SHANNON KELLY
News Editor
Provost Darryl Tippens announced in a letter yesterday that the University will solicit outside auditors to conduct an independent, comprehensive review of the university financial aid practices. The decision is in response to New York Attorney General Andrew Cuomo’s investigation of more than 60 school’s, including Pepperdine, whose financial aid offices he suspects are engaging in deceptive lending practices.
“We take any allegations of financial aid improprieties very seriously and will do all that is necessary to make sure that we offer competent and ethical assistance to our students,” Tippens said in the letter.
Tippens, who declined to comment to the Graphic about the new developments, also disclosed the University’s decision to place a Pepperdine financial aid officer on administrative leave pending further review. “Recently, we have determined that one of our financial aid officers engaged in conduct that may have resulted in a conflict of interest,” he said in the letter.
The letter does not reveal the officer’s actions, but says “When financial aid officers serve on advisory boards, they will continue to do so without compensation from the lending institution, and their travel expenses will be covered by the University.”
Last month Pepperdine received a letter from Cuomo asking for cooperation with the probe and responded by providing his office with the requested documents including a list of the financial aid office’s counselors and officers as well as the criteria for selecting the “preferred lenders” list.
“Our university responded to the attorney general, and in that response we assured his office that the best interest of our students is a concern we both share,” Jerry Derloshon, director of Public Relations told the Graphic on March 22.
On March 23, Vice President for Advancement and Public Affairs Keith Hinkle announced that the University had ended relations with Educational Finance Partners (EFP), a lender that had been accused by Cuomo of providing kickbacks to numerous colleges and their financial aid offices, including Pepperdine’s.
“It has become evident that the nominal benefit provided to our students may be outweighed by the perception that the arrangement creates,” Hinkle said in a statement he sent to students and faculty.
Please see the March 22 and March 23 articles, “Pep pegged in national kickback probe” and “Pep ends relations with accused lender” for more on this story.
04-17-2007