Tuesday, May 1, 2007

How are preferred lender list membership determined?

Well, according to an article today in University of Texas - Austin's campus paper, it appears that "treats", randomness, and $1 per share stock offerings seem to be a big determinant.

This article is a must see. Make sure you look for the PDF links off to the side. It appears to be emails and docs produced for the Cuomo/Kennedy supeana's. So, we get some very interesting insight into how a financial aid office determines the lenders, their position, and other ridiculousness. The "Preferred Lender Reviews" PDF link is a document that summarizes their internal ranking process. It's good that they have what appears to be an objective rubric for determining list inclusion and list selection. But there are some bizzar characteristics that they consider. We especially like the "Where or What" dimension that factors into the lender list decisions. You'll see that taking the financial office staff out to happy hour at the Hula Hut is quite important. Also, ice cream, birthday cakes, and BBQ lunches are quite significant.

So, we're still reading through the produced information and shaking our heads. But it's no wonder why this issue is getting so much attention.

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