When Connecticut Attorney General Richard Blumenthal scrutinized Fairfield’s financial aid practices last year, the University settled the issue by adding $75,000 to its financial aid funds, while not admitting to any wrongdoing.
Blumenthal spearheaded an ongoing investigation into whether or not Connecticut schools have received gifts or donations from loan lenders in exchange for the schools putting them on preferred lender lists.
He declined to comment on specific schools in an interview with the Hartford Courant, but did say that the investigation is still ongoing.
“There are a couple of issues we need to resolve,” Blumenthal said.
The University of Connecticut [UConn], another school under investigation by Blumenthal, recently revealed the results of an internal audit of its own financial aid practices.
The school denied the allegations and said that its preferred lenders were chosen only because each provides a service that is in the best interest of the students.
“It was one of those audits that was very reassuring. It kind of validates the good work the University is doing,” K. Michael Walker, director of UConn’s Office of Audit, Compliance and Ethics, told the Courant.
“The University is being aggressive about assisting parents and students about making good financial aid decisions,” Walker said.
Blumenthal’s investigation came about after federal investigators determined that, throughout the country, relationships between colleges and loan lenders had been formed illegally, despite being in the best interest of both parties.
Fairfield received $16,000 in software discounts and a free trip to Amelia Island in Florida for a financial aid director to discuss loan issues from the College Board. Fairfield officials said that the University did not give anything in exchange.
“Such trips were common practices at schools across the nation,” said University President Fr. Jeffrey von Arx in a Fox Online News article in August.
Vice President of Marketing and Communications at Fairfield, Rama Sudhakar commented on the University’s practices, defending the policies along with von Arx.
“Fairfield sought discounts wherever possible to get the best prices for the institution,” said Sudhakar. “The University had followed the common practices of most higher education institutions when purchasing financial aid tools and services from third-party vendors.”
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