2008 Woodie Awards
SIUC athletics under investigation
Wes Helmholz
Issue date: 8/23/07 Section: News
The Southern Illinois University Carbondale Athletic Department, along with some other high-profile collegiate athletic programs, may have brought some unwanted attention regarding its relationship with a student loan provider.
The New York State Attorney General's Office sent out subpoenas and requests for information to 40 universities nationwide Aug. 1. The request applies to all documents detailing or pertaining to the relationship between the schools' athletic departments and student loan provider, University Financial Services. The office specifically requests documentation regarding, among other things, how and why UFS was chosen as the athletic departments' lender of choice.
The office has investigated interactions between universities and student loan providers since shortly after New York Attorney General Andrew Cuomo took office in January. More recently, it has focused on collusion between university athletic departments and lenders.
According to a statement issued by his office, Cuomo intends to find out whether SIUC and other schools violated New York state and federal consumer protection laws by engaging in revenue sharing. If the athletic department at SIUC chose not to evaluate UFS's interest rates prior to their endorsement, or if their endorsement was based purely on payments, the school could be in violation.
"Students trust their university's athletic departments because so much of campus life at Division I schools centers around supporting the home team," Cuomo said in an Aug. 1 press release. "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."
SIUC athletic director Mario Moccia said, after the department and UFS signed a 3-year, $10,000 contract in Aug. 2006, there was "no written or verbal communication between (the department) and the company (UFS)."
The New York State Attorney General's Office sent out subpoenas and requests for information to 40 universities nationwide Aug. 1. The request applies to all documents detailing or pertaining to the relationship between the schools' athletic departments and student loan provider, University Financial Services. The office specifically requests documentation regarding, among other things, how and why UFS was chosen as the athletic departments' lender of choice.
The office has investigated interactions between universities and student loan providers since shortly after New York Attorney General Andrew Cuomo took office in January. More recently, it has focused on collusion between university athletic departments and lenders.
According to a statement issued by his office, Cuomo intends to find out whether SIUC and other schools violated New York state and federal consumer protection laws by engaging in revenue sharing. If the athletic department at SIUC chose not to evaluate UFS's interest rates prior to their endorsement, or if their endorsement was based purely on payments, the school could be in violation.
"Students trust their university's athletic departments because so much of campus life at Division I schools centers around supporting the home team," Cuomo said in an Aug. 1 press release. "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."
SIUC athletic director Mario Moccia said, after the department and UFS signed a 3-year, $10,000 contract in Aug. 2006, there was "no written or verbal communication between (the department) and the company (UFS)."
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McLovin
posted 9/10/07 @ 2:01 PM CST
A gripping and well-researched example of journalism at its finest. I am well pleased Mr. Helmholz-- keep up the good work and I look forward to more fascinating publications in the near future. (Continued…)
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