SEIU Report on Nova Student Loan Program Sparks Concern and Underscores Need for Transparency

MIAMI--(BUSINESS WIRE)--A report released today by SEIU unveiled concerns with Nova Southeastern
University’s loan practices that involve
potential conflicts of interest, including many of the same concerns
currently being investigated by the New York Attorney General at other
universities, including a Nova financial aid call center run by a
private lender and additional bureaucracy for students who wish to use
non-preferred lenders.

CONCERNS:



Nova law school dean Joseph D. Harbaugh sits on the board of directors
of Access Group, one of the school’s
preferred lenders. A 2001 report by Harbaugh discussed how he brought
in the Access Group as a consultant for law students to discuss
budgeting and debt, with the goal of keeping student debt down.


As identified in the Miami Herald, Sallie Mae runs a Nova student loan
call center. Sallie Mae also appears to run Nova’s
graduate student loan website. Although the webpage has the NSU logo
and Office of Student Financial Assistance web banner at the top of
the page, the site is run through the Sallie Mae “e-fao.com”
site and says “powered by Sallie Mae”
in the lower right corner.


Students who wish to use a lender other than one on the preferred list
must complete additional paperwork. Nova’s
Guide to Student Financial Aid cautions students that choosing a
lender not listed on Nova’s preferred list
may result in a longer processing time.


Carl Buck, the Vice President of Peterson’s,
a subsidiary of Nelnet, presented a free seminar to Nova students on “The
Secrets of Financial Aid” in Fall 2006.

Nova should take this opportunity to be more transparent in how it
structures its student loans. The Florida state Attorney General has
started an investigation of Florida state schools and is calling on
universities across the state to sign an agreement to manage loans
without conflicts of interest.

A report released today unveiled concerns with Nova Southeastern
University’s loan practices that involve
potential conflicts of interest. SEIU researchers uncovered the
worrisome report on Nova’s student loan
practices as part of the growing concern over Nova’s
commitment to the community, as more than 100 low-wage service workers
were turned away from their jobs after forming a union.

New York Attorney General Andrew Cuomo started investigations into the
relationship between colleges and lenders nation-wide, revealing that
preferred lender lists can increase costs for students.

Teen charged with taking credit card from locker room

A Rhinelander teen has been charged with stealing a credit card from the locker room area at the YMCA of the Northwoods.Aaron Richardson, 17, made an initial appearance in Oneida County Circuit Court Friday where he was charged with fraudulent use of a credit card (a misdemeanor punishable by nine months in jail) and felony bail jumping.




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According to a police report attached to the complaint, Richardson was with two other young people at the YMCA when one of them allegedly took the credit card from a locker.The group took the credit card to Wal-Mart and Shopko where they successfully bought clothes and an IPod before one of the stores denied the card.It is unclear if the two people with Richardson are awaiting charges or if they have already been charged in juvenile court.Richardson was charged with bail jumping because he was free on bond in an Iron County case involving burglary and other charges.He is scheduled to be back in Oneida County Circuit Court May 7 for a preliminary hearing.YMCA of the Northwoods Executive Director Steve Courts says the Y advises its members to lock all of their belongings either in their car or in a locker. Locks are available for the lockers, he added, noting that the Y also has mandatory sign-in for all persons in the building.Courts said people tend to think that the YMCA is different from other places and that things like stealing won't happen there, but unfortunately that is not the case.&#8220We tend to have flare-ups a couple of times a year,” Courts said, adding that one theft is too many for his taste.