Independent Audit Finds Midwestern University's School As Lender Program Sound and Benefiting Students
Posted on: Tuesday, 5 June 2007, 12:00 CDT
DOWNERS GROVE, Ill., June 5 /PRNewswire/ -- An independent audit of Midwestern University's School As Lender program (SAL) found the program has no detectable deficiencies and operates in strict compliance with federal law. Clifton Gunderson LLP conducted the voluntary audit of Midwestern's School As Lender program for fiscal years 2004-2005 and 2005-2006.
In addition to finding that the University uses all proceeds from the program for need-based scholarships, the report concluded "that Midwestern University's School As Lender program exhibits ... a culture that advocates comprehensive regulatory compliance as well as a pervasive priority acknowledging that the intended beneficiaries are Midwestern University students."
"This audit not only reinforces our program's unwavering commitment to Midwestern University students but also validates the School As Lender program as a whole and the critical role it plays in lowering student borrowing costs," said Dr. Kathleen Goeppinger, President and CEO, Midwestern University. "In the 2006/2007 academic year Midwestern was able to offer $750,000 in need based scholarships and in the 2007/2008 academic year is offering $1.75 million in need based scholarship to students as a direct result of its participation in the School As Lender program. We also pay all loan origination fees for our graduate level borrowers, helping to further reduce their debt," added Goeppinger.
"In the midst of allegations questioning the value of the School As Lender model, I urge other universities and colleges acting as lenders to conduct independent audits to prove this program is operating well within the intent of the law and serving students' best interests," added Goeppinger.
About 157 colleges and universities participate in the School As Lender program under the Federal Family Education Loan Program (FFELP), which allows schools to be lenders of graduate and professional loans in medicine, law or business. School As Lender loans offer many benefits to students, including lower interest rates and fees compared to direct or private loans and schools generally pay loan origination fees for students. Additionally, as mandated by law, schools must use 100% of the proceeds they earn from lending to students to fund need-based grants and scholarships.
The audit of Midwestern's School As Lender program was conducted by Clifton Gunderson from February through May 2007 in accordance with Generally Accepted Government Auditing Standards. After examination of Midwestern University's policies and procedures, control environment and governance structure, as well as the administrative expense and need-based scholarship disbursements related to its School As Lender program, the audit concluded that the program demonstrated no significant or material control weaknesses.
The audit report also confirmed that "excess proceeds from the Midwestern University School As Lender program are properly disbursed through student scholarships and distributed according to student financial need. " Currently ranked as one of the top five college lenders in the nation, Midwestern University has participated in the School As Lender program since 1988.
About Midwestern University
Midwestern University is a graduate degree-granting institution specializing in the health sciences with five colleges-the Chicago College of Osteopathic Medicine, the Chicago College of Pharmacy, the College of Health Sciences, the Arizona College of Osteopathic Medicine, and the College of Pharmacy-Glendale. The Illinois campus is located on a 105-acre site in Downers Grove, a western suburb of Chicago, and is home to more than 1,800 full-time students. The Arizona campus is located on a 135-acre site in Glendale and is home to more than 1,300 students. The University is accredited by the Higher Learning Commission, A Commission of the North Central Association of Colleges and Schools.
Contact: Crystal Wright
202/829-0848
Midwestern University
CONTACT: Crystal Wright for Midwestern University, +1-202-829-0848
Source: PRNewswire
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