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Newspaper calls out financial aid director
Sahlhoff's stock in preferred lender raises no concern
Mark Schaaf
Issue date: 4/19/07 Section: Campus News
UW-Eau Claire Financial Aid Director Kathleen Sahlhoff defended university practices after the Milwaukee Journal Sentinel reported she owns stock in a company that is on the university's preferred lender list.
Sahlhoff owns 200 shares valued at about $10,000 in Citigroup, whose parent company, Citibank, is listed as a preferred lender for students wanting private loans.
She said the stock is part of her retirement account managed by a financial adviser in Washington, who is focused on diversifying her portfolio. She said she discovered the stock while searching for answers for a Journal Sentinel information request.
"No one in the financial aid office has ever received any kind of kickback or remuneration of any kind," she said. "Students and parents have to be confident that the only reason we're doing our jobs here is to serve students. That's the only motivation we have."
The preferred lenders are four private financial institutions - Citibank, KeyBank, Wachovia and U.S. Bank. However, nearly 92 percent of all loans the university helps students with are federal, Sahlhoff said, adding UW-Eau Claire is a direct lending school.
Sahlhoff said the decision to purchase the stock was based on a recommendation made by her financial adviser, which she then signed off on.
Vice Chancellor Andy Soll said preferred lenders are determined by a set of criteria, and Sahlhoff does not determine which companies meet the criteria.
Soll also said Sahlhoff's investment in Citigroup was such a small amount that it she has no more influence on the company than anyone else.
The Journal Sentinel report, which appeared on the front page of Tuesday's edition, was labeled a "watchdog report" on the UW System, with reports of other possible conflicts of interest at UW-Oshkosh, UW-La Crosse and UW-Green Bay.
Sahlhoff said the UW System is in the process of setting up a code of conduct for similar types of transactions, something she would support.
"In this office we are interested in being as transparent, up front and ethical as we can be," Sahlhoff said. "I feel comfortable in saying that our decisions will stand the light of day."
Sahlhoff owns 200 shares valued at about $10,000 in Citigroup, whose parent company, Citibank, is listed as a preferred lender for students wanting private loans.
She said the stock is part of her retirement account managed by a financial adviser in Washington, who is focused on diversifying her portfolio. She said she discovered the stock while searching for answers for a Journal Sentinel information request.
"No one in the financial aid office has ever received any kind of kickback or remuneration of any kind," she said. "Students and parents have to be confident that the only reason we're doing our jobs here is to serve students. That's the only motivation we have."
The preferred lenders are four private financial institutions - Citibank, KeyBank, Wachovia and U.S. Bank. However, nearly 92 percent of all loans the university helps students with are federal, Sahlhoff said, adding UW-Eau Claire is a direct lending school.
Sahlhoff said the decision to purchase the stock was based on a recommendation made by her financial adviser, which she then signed off on.
Vice Chancellor Andy Soll said preferred lenders are determined by a set of criteria, and Sahlhoff does not determine which companies meet the criteria.
Soll also said Sahlhoff's investment in Citigroup was such a small amount that it she has no more influence on the company than anyone else.
The Journal Sentinel report, which appeared on the front page of Tuesday's edition, was labeled a "watchdog report" on the UW System, with reports of other possible conflicts of interest at UW-Oshkosh, UW-La Crosse and UW-Green Bay.
Sahlhoff said the UW System is in the process of setting up a code of conduct for similar types of transactions, something she would support.
"In this office we are interested in being as transparent, up front and ethical as we can be," Sahlhoff said. "I feel comfortable in saying that our decisions will stand the light of day."
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