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State Panel OKs Student Loan Guidelines For Universities

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By ADAM EMERSON, The Tampa Tribune

Published: December 6, 2007

Members of Florida's university oversight board on Wednesday approved a code of conduct for its public universities to follow when dealing with student lenders.

The code, partly drafted by state Attorney General Bill McCollum, would forbid university employees from receiving kickbacks from student loan providers.

McCollum joined attorneys general in other states in surveying the public and private universities about their business practices with lenders. Reports of cozy relations between college financial aid offices and loan providers have surfaced nationwide all year.

McCollum noted that he found "no significant conflicts of interest" at the state's 11 public universities, but said his office's review of private universities "is still under way."

Under the proposed code, developed with the state Board of Governors, university employees are prohibited from:

•Receiving personal benefit from lenders, including cash, stocks, gifts, entertainment or paid trips.

•Serving in a paid position on a lender's advisory board.

•Accepting anything that would give a lender an advantage for business.

•Staffing a financial office with a lender's employees.

A committee of the Board of Governors meeting Wednesday in Orlando passed the measure. The entire board is expected to pass it today.

In other business, a board committee recommended that Lakeland developer Walter "Gene" Engle Jr. have a spot on the University of South Florida Board of Trustees. Engle has been on an advisory board of the USF Lakeland campus, and on the USF Foundation board.

The terms of two current USF trustees are coming to an end: Chairwoman Rhea Law is seeking reappointment through Gov. Charlie Crist, and Tampa developer Dick Beard is leaving the board.

Beard has been on the board since its inception in 2001. He is chairman of the Tampa host committee preparing for the 2009 Super Bowl, and he says the demands of that task will require a lot of attention.

The entire board will consider Engle's appointment today.

Reporter Adam Emerson can be reached at (813) 259-8285 or aemerson@tampatrib.com.

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