Marketing Contract Between Tech and UFS Ended in July

Tennessee Technological University is one of the 39 Division 1 institutions under investigation in a national student loan probe. Until last month, University Financial Services had a roughly 10-thousand dollar marketing deal with the school’s athletic department.

University officials assume their relationship with the embattled lender is what landed them in the investigation. UFS is accused of giving gifts for financial aid directors, offering kickbacks for schools who direct students to the lender, and sharing revenues.

Vice President of University Advancement Mark Hutchins says Tech is fully cooperating with New York Attorney General Andrew Cuomo, who’s leading the investigation.

The Tennessee Attorney General had been collecting information from state schools since UFS came under fire earlier this year. Hutchins says that’s when Tennessee Tech cut ties with the lender.

“Even during that fact gathering it was our decision to cancel the contract we had with them so as to not have any sense of impropriety.”

Hutchins says the 10-thousand dollar annual contract was small in comparison to marketing deals the school has with other businesses.

The national kickback probe has already led to settlements from lenders and universities totaling more than 10-million dollars.