Texas-based Crisis

http://www.utexas.edu/opa/news/2007/04/financial05.html
http://www.statesman.com/news/content/news/stories/local/04/22/22loans.html


According to the Austin American-Statesman, there is a current $85 billion nationwide student loan investigation. The investigation is being led by New York Attorney General Andrew Cuomo. Among the Texas Universities are Baylor University, Texas Tech University, Texas Christian University, and The University of Texas. The University of Texas placed its financial aid director on paid leave after Attorney General Cuomo’s office questioned him about his past ownership of stock in the former parent of a student loan company listed by UT as one of its preferred lenders.

After visiting the University of Texas’ website I found a news release that addressed the student loan investigation. The President of the University of Texas, William Powers Jr., makes a statement in the news release and there is a direct quote. In the Austin American-Statesman Mark G. Yudof, chancellor of the University of Texas System was quoted. Cuomo sent Powers a letter informing him of the allegations and the next day (April 5) the release was posted. I believe that for the most part, the two stories about the crisis are in agreement. They both contain the same attitude towards the issue, that this is a severe issue, and I believe that news release from UT is a bit more optimistic. The University of Texas does an excellent job of addressing the issue and I was really impressed that the release was from the President of the University. The news release definitely fills in gaps and adds more to the story than the news coverage, by releasing the name of the financial aid director (Lawrence W. Burt), and listing the steps that the University has taken to come to a solution to the crisis (“Powers asked James R. Huffines, chairman of the University of Texas System Board of Regents, and Mark G. Yudof, chancellor of the University of Texas System, to authorize the Office of the General Counsel of the University of Texas System to conduct an investigation in collaboration with the university. The investigation will be led by Vice Chancellor and General Counsel Barry D. Burgdorf of the University of Texas System”)