Lasell Pays $191,000 to Settle Student Loan Case

September 3, 2010

Lasell College has agreed to pay students $191,000 to resolve complaints from the Massachusetts attorney general that the college improperly encouraged students to borrow funds from a lender that was giving the institution's aid officials free trips, The Boston Globe reported. There were less expensive loans available at the time, and the college never revealed to students that its officials had ties to the lender they were sent to. The lender paid for trips by the financial aid director to resorts in Florida and Arizona to serve on an advisory board. College officials said that the travel was legitimate, but that they agreed to settle the case by paying funds back to students who borrowed. A statement by Martha Coakley, the attorney general, said: "Colleges and universities are in a unique position of trust and have a responsibility to provide lending advice that is in the best interest of students and untainted by conflicts of interest. Certainly, no school should ever attempt to restrict a student’s abilities to obtain more affordable loans.’’

+ -

Expand commentsHide comments  —   Join the conversation!

Opinions on Inside Higher Ed

Inside Higher Ed’s Blog U

What Others Are Reading

  • Viewed
  • Past:
  • Day
  • Week
  • Month
  • Year
Back to Top