A U.S. Senate probe of the student loan business indicated the problem of gifts and payoffs to university officials is more pervasive than originally believed.

A report released by the Education Committee concluded the scandal isn’t limited to a few problem lenders and schools, The New York Times reported Friday.

To drum up favored status at colleges and universities, lenders did everything from paying for junkets to Disney World to frequently sending bottles of wine to a university aid director.

The report said Nebraska-based lender Nelnet created an elaborate point system to reward college officials who provided advice while Bank of America spent $11,414 to sponsor a lunch at the College of William and Mary in Virignia.

According to the report, in some cases it was the colleges themselves that initiated the quid pro quo, the Times said.

A Citibank sales report obtained by the panel told how Chaminade University in Hawaii asked the bank to have receptions for admitted students in exchange for business, the newspaper reported.

Information from: www.upi.com

This entry was posted on Friday, June 15th, 2007 at 10:30 pm and is filed under Education, Student Loan. Tags: College, Education, Student, Student Loan. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.