Emerson College announced today that students who obtained loans from three financial institutions designated as “preferred lenders” between 2004 and 2006 will receive a payment under agreements (known as “Assurances of Discontinuance”) reached by the College with the Attorneys General of Massachusetts and New York.
The payments, which range from $25 to $833 depending on the amount borrowed, will total $780,000, be made to approximately 4,000 students, and have already been processed. Students who have graduated will be mailed a check, while continuing students will receive tuition credit.
The students receiving payments were recipients of federal Stafford loans from Citizens Bank and Chase during the 2004–2005, 2005–2006, and 2006–2007 academic years, and recipients of private loans from Education Finance Partners (EFP) during the 2005–2006 and 2006–2007 academic years.
Vice President for Communications Andy Tiedemann said the College's acceptance of the agreements “does not constitute an admission by Emerson of any fact or noncompliance with any state or federal law, rule, or regulation.” He noted that the College cooperated fully in the investigations and has implemented all of the program changes that the Attorneys General have recommended, including adoption of a strict code of conduct governing the activities of its student financial aid staff.
The agreements result from an investigation into Emerson's past administration of its student loan programs between 2004 and 2006.
“We are committed to helping students and parents meet the costs associated with pursuing higher education in a forthright and ethical manner by providing them with factual information and access to a full range of federal, state, and institutional financial aid programs,” Tiedemann said. “We no longer recommend specific lenders. Our goal continues to be guiding families through the financial aid process and helping students obtain financial assistance under the most favorable terms available to them.”