News and Events
Pepperdine Completes Review of Student Loan Practices
University Confirms Actions as Ethical and Legal
Pepperdine University has completed a thorough review of its policies and practices concerning student loans and has determined it has performed ethically, legally, and within acceptable guidelines and practices. The review was undertaken following a New York State Attorney General's Office inquiry into the practices of certain student loan companies that were included on Pepperdine's preferred lender list.
Pepperdine officials believe that the University's high concern for the best interests of its students has been maintained regarding student loans, including the use of certain lenders as preferred lenders of Pepperdine's schools.
Pepperdine traditionally has provided its students with information about a number of lenders that students may choose to meet their borrowing needs. The information has been useful as students go through the process of selecting lenders. As a result of its own internal review, Pepperdine reconsidered an arrangement it had with a lender that provided a minimum return to the University that was used to assist other students seeking financial aid. Even though the lender made express disclosures in its loan documents about the arrangement, Pepperdine decided that the perception it created outweighed the nominal benefit provided to its students and the University has ended the arrangement.
Additionally, Pepperdine has determined that it will provide greater transparency about the criteria by which lenders are selected to be included as preferred lenders. We will also provide clear disclosures, beyond what is already being provided by the student loan companies, concerning any relationships with our preferred lenders.
Pepperdine shares and respects the New York Attorney General's Office concern about student loans. The University is confident of the legal and ethical nature of its conduct and remains committed to serving the best interests of its students.
Further, Pepperdine will continue to regularly monitor policies and practices concerning student loans and take appropriate action when necessary to uphold its own high standards of ethics and integrity.