Financial aid administrators discovered late Thursday afternoon that the Princeton Review Web site listed My Rich Uncle as a "Partner Lender" to institutions that have no relationship with the FFEL lender. In an interesting twist, Direct Lending schools also had the lender listed as their "Partner Lender."

It began with a couple of e-mails posted to the FinAid-L listserv and the Health Professions MedAid-L listserv. Aid administrators noticed that under the financial aid section of their school's listing on the site, My Rich Uncle was shown as "Partner Lender" with a link to its Web site.

Word quickly spread as many aid administrators posted messages confirming that My Rich Uncle appeared as their school's partner lender even though it was not the case. Administrators expressed shock and dismay at the listing, but noted that their school would never deny a student's right to choose any lender and that a student's Stafford loan certification request would always be processed promptly using whichever lender the student chooses.

A spokesman for My Rich Uncle said the company would return NASFAA's phone call on Friday. The Princeton Review has not returned NASFAA's phone calls.

The Higher Education Act gives students the legal right to choose any lender, including lenders that are not on the preferred lender list, and the school must promptly certify that loan. If your school is on the a Princeton Review Web page and one or more lenders are listed as the institution's partner lender that do not have an agreement or arrangement with your institution, you may want to consider referring the matter to your school's attorneys for further review and guidance.

By Larry Zaglaniczny
NASFAA Director for Congressional Relations

Posted 03/09/07 to www.NASFAA.org. Redistribution to non-NASFAA institutions is prohibited. Please submit Web Site questions or comments to Web@NASFAA.org.