BGSU is subpoenaed by New York as part of student loan probe

8/1/2007

Bowling Green State University is one of 40 universities served subpoenas and document requests today by New York State Attorney General Andrew M. Cuomo as part of the ongoing investigation into the student loan industry.

Mr. Cuomo is seeking information on deals the universities athletic departments made with student loan provider, Student Financial Services Inc., doing business under the name University Financial Services. The investigation involves whether athletic departments agreed to promote the loan provider in exchange for kickbacks.

"Students trust their university s athletic departments because so much of campus life at Division I schools centers around supporting the home team," Mr. Cuomo said in a statement.

"To betray this trust by promoting loans in exchange for money is a serious issue, especially when Division I schools already generate tremendous revenue from their student athletes. Today s action is an important new step as we continue to examine the unethical conflicts that pervade the student loan industry."

Thirty eight of the universities are Division I schools. The other schools in Ohio that are named include Ohio University, Wright State University, and Youngstown State University.

Read more in later editions of The Blade and toledoblade.com