New York Attorney General Andrew Cuomo has been investigating a major provider of student loans for allegedly paying kickbacks to colleges that steered business their way. Recently, it's been reported that colleges had steered athletes to the lender and that Arkansas State University was one of those being probed. ASU issued this statement yesterday:
Arkansas State University-Jonesboro received a request today from the Attorney General of New York for documents relating to University Financial Services, Inc. (UFS). After a search of its records today, ASU has found no contract or agreement between it and this company.
However, ASU did find that the Indian Club, a separate 501(c)(3) corporation, which supports ASU athletics, on August 23, 2006, entered into a sponsorship agreement with UFS. Upon learning of its existence on February 6, 2007, the university requested that the sponsorship agreement be cancelled. ASU has been informed that this request was honored by the Indian Club.