Director: Lending changes not affecting university

One of TCU’s preferred lenders, amidst the threat of a lawsuit, is changing its policies on its revenue-sharing program, but an administrator said Monday that the university already complies with the new policies.In a press release, Tamera Briones, founder and chief executive for Education Finance Partners, said the company will increase disclosure and require explicit terms for what revenue-sharing payments can be used for.

The press release was a response to New York Attorney General Andrew Cuomo’s intent to file suit against EFP for deceptive business practices, part of an ongoing investigation. Briones said they will immediately enhance their disclosure protocol, adding clear admissions to its marketing material and customer communications. They will also require schools that receive revenue sharing payments to use them for the benefit of students.

Mike Scott, director of scholarships and financial aid at TCU, said the changes will not affect TCU because the university is already in compliance with the terms. He said he likes the new terms of the loan programs and is in favor of them being a requirement for all participating schools.

Scott said he does not think EFP’s policy changes will alter the attorney general’s plans to file suit.

Cuomo “doesn’t seem to be interested in what the schools are actually doing with these funds,” Scott said.

The attorney general’s office has not returned multiple phone calls regarding EFP’s press release and EFP deferred all questions to the release.

“While we hope that the changes we are announcing today will address any concerns the attorney general might have,” Briones said, “We are fully prepared to defend our program and our school customers in court, if necessary.