Suit Claims Firm’s Deception on Student Data Sale
PORTLAND, Ore.
CollegeNet Inc., which provides Internet and software-based administrative services to the higher education sector, has recently filed a lawsuit in U.S. District Court in Oregon charging competitor XAP Corp. with misleading colleges, universities and students about the sale of student data.
Through its “Mentor” Web sites, XAP receives and processes online admissions applications on behalf of U.S. colleges and universities. CollegeNet alleges that XAP has regularly provided student information to student loan lenders, loan guarantors and others without disclosing to schools that they
were doing so, and without obtaining informed consent of the students involved. The complaint also alleges that XAP has been paid substantial sums of money by these lenders.
Martha Notaras, XAP chief executive officer, called the suit “absolutely groundless” according to the Portland Oregonian. “On the majority of XAP sites, students are never asked and never receive any commercial content,” Notaras has said.
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