KU denies direct link to student loan company under investigation

Wed, Aug. 01, 2007
University of Kansas officials denied on Wednesday having a direct relationship with University Financial Services, a student loan company that is under investigation by the office of New York Attorney General Andrew Cuomo.

Cuomo recently uncovered an agreement between the athletic director at Dowling College in Long Island, N.Y., and UFS, which entailed UFS paying the school $75 for every new loan application it received with the athletic department’s help.

To further his investigation, Cuomo is trying to learn whether top college athletic departments nationwide have received similar kickbacks for directing athletes and other students to preferred education lenders. KU was subpoenaed along with 39 others — including Auburn, Georgetown and UCLA.

UFS, officially named Student Financial Services Inc., is indeed a sponsor of Kansas athletics, but Kansas associate athletics director Jim Marchiony stressed that the department does not receive money from UFS.

“UFS’ relationship is with Host Communications, which owns Kansas athletics’ multimedia rights,” Marchiony said. “So UFS pays Host, not Kansas athletics. Host pays us a fee every year for owning our multimedia rights, then they go out and sell sponsorships. They keep the money for the sponsorships they sell. This is a sponsorship just like Crown Toyota, Holiday Inn, anything else.”

Resource: http://www.kansascity.com/sports/story/215199.html