ISU suspends advertising contract pending investigation

August 2 2007

Indiana State University has suspended an advertising contract with Student Financial Services Inc., pending the outcome of an investigation of the company’s marketing practices and whether they violate federal consumer protection laws, a university official announced today.

Indiana State is one of several dozen institutions who received a request for information from New York Attorney General Andrew Cuomo on Wednesday regarding their relationship to Student Financial Services Inc., which operates as University Financial Services (UFS).

UFS purchased advertising through Nelligan Sports Marketing, a national marketing company which has a contract with ISU’s Department of Intercollegiate Athletics, as well as other colleges and universities. Nelligan is contracted to arrange advertising and sponsorships with a variety of companies in support of ISU’s intercollegiate athletics program.

“We are cooperating with the investigation and have asked Nelligan to suspend the relationship with UFS pending its outcome. We are seeking clarification of how these regulations might apply differently to financial services companies than to other sponsors and advertisers,” said Teresa Exline, university spokesperson.

The UFS advertising is geared toward graduates looking to consolidate student loans and is not connected to the university’s Financial Aid Office, Exline added.

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CONTACT: Teresa Exline, university spokesperson, Indiana State University, texline@indstate.edu, (812) 237-7783

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Indiana State University has suspended an advertising contract with Student Financial Services Inc., pending the outcome of an investigation of the company’s marketing practices.

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