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dfdThe other shoe in Columbia's financial aid boondoggle dropped in Bwog's inbox this morning: a few weeks after jettisoning former Dean David Charlow, the University has recieved its comeuppance from New York State, which threw the book at us harder than any other school. "We believe Columbia's employee was acting illegally," said Attorney General Andrew "Enforcer" Cuomo. "A corporation must police its employees." As such, Columbia will pay up a cool $1.1 million, and sign the College Loan Code of Conduct--but only because they wanted to, not because they had to. Or at least that's how Low Library is framing it.

"Columbia University does not admit, and expressly denies, that it has violated any law in connection with its student loan practices," read the statement from Public Affairs director Robert Hornsby. "Columbia is not paying a fine or making any restitution as part of the settlement, but will contribute $1,125,000 to the Attorney General's national fund for educating and assisting students and their parents about the financial aid process."

One tipster opines: "You know that somehow the increased oversight is going to result in more paperwork for students. Thats what happens everytime Columbia gets busted for poor oversight- they pass the new 'rules' on."

Spec got to the story first, while Bwog was having technical difficulties. Look for more backstory from them imminently. UPDATE, 2:15 EST: Sexy details in expanded article!

- LBD


Bwog returned home to find the following announcement from Director of Media Relations Robert Hornsby in its inbox:

jhjk"Last month, Columbia promptly brought information received about David Charlow's relationship with former preferred lender Student Loan Xpress to the Attorney General's attention and suspended Mr. Charlow from any engagement in the affairs of the University. As of today, Mr. Charlow has now been dismissed from his employment at Columbia College.

We have been working cooperatively with the Attorney General's office to provide documents and materials related to Mr. Charlow's tenure as the head of financial aid for the undergraduate College and the School of Engineering and Applied Science. As these matters are now appropriately in the hands of the Attorney General, we cannot comment further on Mr. Charlow at this time."

Charlow follows on the heels of the UTexas guy, and will add nicely to Attorney General Andrew Cuomo's trophy case. Spec has more here, and the New York Post (they are useful sometimes) has some serious dirt here. Our favorite quote:

"I want by its design to lead the students to [the] best decision in an idiot-proof way," wrote Charlow to the CEO of Student Loan XPress, the company that earned him over $100,000 in stock sales.

Who's the idiot now, David?


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