There's no indication that student aid administrators at Louisiana's state universities have any unethical ties to loan companies, but recent scandals elsewhere show a code of conduct is needed, the state's top higher education board has decided.
The Louisiana Board of Regents ordered the four systems under its jurisdiction to review their policies, draft new conduct codes and ensure there are no abuses in the loan process.
A group representing financial aid workers at nearly 3,000 colleges and universities nationwide has begun developing its own code after revelations that some lenders offered gifts, trips and other inducements in exchange for steering students to their companies.
New York Attorney General Andrew Cuomo and The New America Foundation, a think-tank, have exposed conflicts of interest among a handful of financial aid officers and loan companies, including Sallie Mae and Nelnet.
Regents Chairman Pat Strong, of Franklin, said it is important to have an internal "gut check" to ensure there are no conflicts of interest in Louisiana.
State Commissioner of Higher Education Joseph Savoie said he has no reason to believe Louisiana's financial aid administrators, who recommend preferred lenders to students, have unethical ties to loan companies.
"I would imagine there will be inquiries. So we wanted to make sure we were proactive."
The college systems should complete new conduct codes prior to the Regents' August meeting, Savoie said.
Nothing is wrong with school officials offering preferred lender recommendations, he said. Problems arise when lenders give money or other valuable items to the schools or school officials, Savoie said.Labels: financial aid, student loans, study abroad |
