The University of Texas fired the director of financial aid at its Austin campus for improper conduct last week, reporting that he had more ties to a student loan company than had been known and had begun recommending the lender to students a few months after he bought stock in its parent company.
The university announced the dismissal of the director, Lawrence W. Burt, who had been on paid leave since last month, as it released a 33-page report — with an additional 100 pages of internal e-mail messages, letters and analyses from the Austin financial aid office — that provided the most detailed public documentation yet of how lenders sought favor inside a university.
The report described a university financial aid office that was oblivious to conflicts of interest and kept meticulous track of “lender treats” like ice cream, happy hours and birthday cakes that apparently were considered in deciding whether to put loan companies on lists of lenders recommended to students. The report called the compilation of such lists “flawed” and done at the sole discretion of Dr. Burt, who was placed on leave after it was disclosed he held stock in Education Lending Group while making decisions about Student Loan Xpress, one of its affiliates.
“It is not at all clear that the factors considered by Dr. Burt” in putting together lender lists “served the students’ best interests or, even if they did, it is not clear how these factors were weighed in making the final decision,” the report said. It said Student Loan Xpress was one of the most frequent givers of “treats.”
This from the New York Times.
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