As outlined in a May 2007 Bricker & Eckler bulletin Student Loan Controversy: Ohio Joins the Nationwide Fray, a number of state Attorneys General, the United States Congress, and the United States Department of Education have been investigating the practices of private student loan lenders and their interactions with various colleges and universities. Among other things, these investigations have focused upon gifts, travel and entertainment provided by the private student loan lenders to various college and university officials in an attempt to secure placement on the university's preferred lender list. Recently, Ohio Attorney General Mark Dann began a similar investigation in Ohio, sending an investigative inquiry letter to all Ohio public and private colleges and universities, as well as to several student loan lenders.

The investigation and review of student lending practices in Ohio expanded this week with a warning by the Ohio Ethics Commission and an announcement by the Ohio Attorney General of a broader review. As reported in The Columbus Dispatch and several other newspapers on May 9, 2007, the Ohio Attorney General is now expanding his investigation of unethical financial arrangements with student-loan companies to target education foundations and alumni associations in addition to colleges and universities.

While the focus of the Ohio Attorney General's investigation appears to be upon the private lending organizations, the activities of college and university employees is also necessarily implicated. This involvement was highlighted recently by the Ohio Ethics Commission when it issued a warning to public colleges and universities about the Ohio law and ethical restrictions that govern public employees and officials.

The Ohio Ethics Commission reminds student loan lenders and public college and university employees that Ohio's ethics laws prohibit gratuities offered to public college or university employees. An Advisory Opinion issued in 2003 analyzes the applicable law in more detail and makes clear that public college and university employees are prohibited from soliciting or accepting entertainment, meal, travel, gifts or other things of value from a private student loan lender.

The Attorney General's expansion of the investigation into new entities plus the recent warning issued by the Ohio Ethics Commission highlight the growing scrutiny on these matters in Ohio and across the country. As Brian Laliberte, Deputy First Assistant Attorney General noted for The Columbus Dispatch: "This story just continues to evolve. . . You open one door and there are three more to open."