AP: NY AG Targeting TCU's Athletics in Student Loan Probe

[ponyte]

The legal experts may have more insight into this issue. I don't think TCU has much to fear from the small state of NY. I doubt NY state has much jurisdiction in Texas. The issue for TCU is whether the NCAA decides to have a look into this. Since TCU isn't part of the BSC then there is reason for TCU to be concerned. I would hate to see TCU get into some kind of trouble with the NCAA. The NCAA would do its level best to crush TCU. The NCAA is desperate to prove that it is tough on violators after its fiasco with OU. TCU could prove to be just the whipping boy the NCAA needs to pound its chest like Tarzan and give a mighty jungle cry.

TCU is a rival, not the enemy. The BSC and the NCAA are the enemy. I do hope TCU doesn't hear from the NCAA on this one.

[FroggieFever]

The legal experts may have more insight into this issue. I don't think TCU has much to fear from the small state of NY. I doubt NY state has much jurisdiction in Texas. The issue for TCU is whether the NCAA decides to have a look into this. Since TCU isn't part of the BSC then there is reason for TCU to be concerned. I would hate to see TCU get into some kind of trouble with the NCAA. The NCAA would do its level best to crush TCU. The NCAA is desperate to prove that it is tough on violators after its fiasco with OU. TCU could prove to be just the whipping boy the NCAA needs to pound its chest like Tarzan and give a mighty jungle cry.

TCU is a rival, not the enemy. The BSC and the NCAA are the enemy. I do hope TCU doesn't hear from the NCAA on this one.

As Deep said, I would think student loans are interstate commerce. Cuomo issued subpoenas and threatened suit against about 60 universities, including TCU, Baylor, UT, Drexel, Dusquesne, Ole' Miss, Washington-St.Louis, Boston U, Long Island U, and Clemson, knowing that interstate squabbles fall under federal jurisdiction.

Thanks for your kind words, too.

[EastStang]

I assume these student loans would be for walk-ons and non-qualifiers and partial scholarship athletes. If there was some sort of kickback scheme involving student loans to athletes, it may not violate NCAA rules, but certainly would certainly be a black eye to the University if they admitted some sort of wrongdoing. What's also interesting is how Cuomo has jurisdiction over a loan made in Texas unless it involves a New York bank.

[Deep Purple]

I heard from a guy who works on the grounds at TCU (interestingly enough an NTCC Professor), and he said that Gary Patterson was co-signing all the loans for the Football players.

Now that makes a hell of a lot sense. Players on full scholarship qualifying for student loans.

The NCAA is not involved in this charade, and probably won't be since a) No laws have been broken (Cuomo is threatening civil suits, not criminal charges), b) the schools the NY AG is investigating include some pretty important BCS names, c) no NCAA rules have been violated. TCU received no revenue from loan-broker International Sports Properties. It did receive about $6,000 per year (about $14,000 total) from loan-broker University Financial Services (also operating as Education Finance Partners), which worked directly with Financial Aid and had no connection to the Athletics Department.

In all but a handful of cases, there was no ethical lapse by any of the schools named, since the so-called "kickbacks" -- also known as revenue-share -- were simply added to the financial aid bottom line and redistributed to students. One of the very few schools actually caught in an ethical problem was UT-Austin, which wound up firing its former director of financial aid, Lawrence Burt, for self-dealing. While sitting on several loan company advisory boards, he was investing in some of the companies, and then listing them as UT preferred lenders.

Six other UT campuses are also under scrutiny, including Arlington, Dallas, Tyler, Pan American, San Antonio, and El Paso. Other institutions being investigated in this state include Baylor and Texas Tech. Nationally, the investigation has touched some pretty prestigious universities, including Columbia and Johns Hopkins. Both have already agreed to settlement deals with the state of New York.

[Cadillac]

Now that makes a hell of a lot sense. Players on full scholarship qualifying for student loans.

You know... I always underestimate the density of Frogs.

-CoS

[EastStang]

Remember, TCU was very quick to offer a lot of non-qualifiers who usually qualified by the beginning of the season, and if they did not they usually went to junior college. Did any of them actually matriculate and pay tuition the first year?