Goucher College's Financial Aid Policies and Practices

Release date: June 27, 2007 |

New York Attorney General Andrew M. Cuomo’s far-reaching investigation last spring into the business practices of the $85 billion student-loan industry raised thorny questions for colleges nationwide. The implication of at least one Baltimore university in the revenue-sharing deals Cuomo uncovered between schools and lenders brought the scandal home to Maryland, and Maryland Attorney General Douglas F. Gansler has now followed Cuomo’s call for reform, proposing a “code of conduct” to govern the relationships between loan companies and the state’s colleges and universities.

Goucher College is committed to transparency and trustworthiness in its financial aid policies and practices. Long before Mr. Gansler proposed his code of conduct, the college undertook a thorough internal review to ensure the integrity of its procedures—particularly with respect to its list of preferred lenders. Goucher is in compliance with Mr. Gansler’s recommendations and will sign on to the code.

The code of conduct would bar college employees from accepting gifts of any kind from lending institutions and would require college officials to disclose the criteria they use to select preferred lenders. It also would prohibit financial aid officers from receiving payment for serving on lenders’ advisory boards and require colleges to tell students of their right to borrow from companies that do not appear on their preferred lists.

Goucher used a focus-group approach in developing its preferred lender list. The college’s Financial Aid Office sent out an open request for proposals to lending institutions; each lender that responded was given the chance to make presentations to a group of students, parents, and staff.

The group judged each lender on the quality of its products, customer service, and additional services. The selected lenders did not provide any financial or other incentives to the college or its employees. No members of Goucher’s evaluation committee or Financial Aid Office were or are affiliated in any way with any of the lenders or their boards.

Although Goucher takes great care in selecting its list of preferred lenders, the college does not require students to use these lenders’ products and will process loans from any lender submitted by students and their families. Goucher provides its list solely as a guide to assist families in navigating the financial aid process.

If you have any questions about financial aid at Goucher College, please call the Financial Aid Office at 410-337-6141.