You may be aware of the recent publicity concerning higher education financial aid/loan practices.

Much of the publicity centers on the investigation undertaken by the New York attorney general, Andrew Cuomo.  Mr. Cuomo has expressed concern that some relationships between lenders and schools may be tainted by possible conflicts of interests.  He also states that he has concerns about the financial arrangements and relationships between lenders and schools, such as revenue sharing and referral fees, particularly those relating to "preferred lender" programs.

Legislation has also recently been introduced in Congress which, if passed in its present form, would place a number of requirements on Universities when they choose lenders for a "preferred lender" list.

At present, no inquiries have been made of Phillips with reqards to its loan practices.