Hi Oles,
Here's a copy of a letter that I am sending to all current St. Olaf students and parents of current St. Olaf students at their home addresses. It's about a matter that has been in the news this week--namely, concerns raised by Minnesota's Attorney General about whether some colleges and universities might be steering students and their families to certain lenders in exchange for financial inducements from those lenders. Good news: St. Olaf does not receive any rebates or payments or other inducements from private lenders. This letter explains what we do and why. Hope this is helpful.
Dear St. Olaf Parents and Students:
Along with every College and University President in Minnesota, I today received a letter from Lori Swanson, Minnesota's Attorney General, about an inquiry she has begun into the student loan industry. You may be aware from news reports that Attorneys General in several states are making similar inquiries of colleges and universities in those states. In her letter, Ms. Swanson asked for full disclosure from colleges and universities about monetary incentives they receive from private lenders. The concern is that colleges or universities may be receiving payments from lenders in exchange for promoting those lenders' products with students and their families.
St. Olaf College does not participate in any revenue sharing with lenders.
We do have a list of “Preferred Lenders” whom we recommend to families that choose to use private lenders to help finance a St. Olaf education. We keep such a list because there are hundreds of lenders serving the student loan market, and not all of them offer advantageous terms. We developed our “Preferred Lender” list after extensive research with the intent of helping students identify loan programs that offer the best terms and student benefits, excellent service, and efficient processing systems. St. Olaf receives no payments or rebates for recommending any particular lender to a family.
Of course, students may borrow funds from any qualified source, whether the source appears on our list or not. Our goal is simply to provide our families with good information about attractive loan options that may best meet their needs.
If you have questions or concerns about the issues surrounding private loans, I encourage you to be in contact with Kathy Ruby, Director of Financial Aid, at (507) 646-3019.
Sincerely,
David R. Anderson ’74
President
