Johns Hopkins aid director resigns in loan scandal

Johns Hopkins assist director resigns in loan scandal

Ellen Frishberg in an undated handout picture, launched to Reuters on May 21, 2007. Frishburg, a monetary assist director at The Johns Hopkins University, resigned after receiving $65,000 in improper funds from a student lender, the college mentioned on Monday. REUTERS/The Johns Hopkins University/Handout

NEW YORK (Reuters) – A monetary assist director at The Johns Hopkins University resigned after receiving $65,000 in improper funds from a student lender, the college mentioned on Monday.

Ellen Frishberg had overseen assist issues for students within the college’s arts and sciences and engineering faculties earlier than resigning on Friday, the college mentioned. She had been on paid depart since April 9. The resignation was efficient instantly.

Frishberg was placed on depart after Hopkins mentioned it discovered from CIT Group Inc. that the corporate’s Student Loan Xpress Inc. unit had from 2002 to 2006 paid her $43,000 as consulting charges and $22,000 in tuition funds for a doctoral program she was enrolled in.

The resignation is the most recent improvement in a widening scandal within the $85 billion student loan trade. On May 14, the University of Texas at Austin mentioned it fired its student monetary assist director after discovering he owned inventory in Student Loan Xpress’ former dad or mum.

New York State Attorney General Andrew Cuomo is investigating whether or not lenders paid kickbacks to universities and monetary assist officers to win enterprise. CIT agreed on May 10 to pay $3 million to settle a probe by Cuomo.

David Kasakove, a companion at Bryan Cave LLP who represents Frishberg, mentioned that over her 18 years at Hopkins, Frishberg “never intended to do anything that would be perceived as harmful to either Johns Hopkins University, its students or their parents, and has always acted in good faith. However, in light of current circumstances, she has decided to resign.”

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Hopkins, which relies in Baltimore, mentioned it has discovered no proof any students or dad and mom had been financially harmed by any relationship between Frishberg and a lender. It additionally mentioned it has canceled lists of urged lenders by Frishberg’s workplace and 6 different monetary assist workplaces across the college.

CIT didn’t instantly return a name looking for remark.