Touro College officials in Manhattan said the school still plans to assume control of New York Medical College in Valhalla in a $60 million deal initially scheduled to close last summer.
The transfer of control from the Archdiocese of New York, sponsor of the independent nonprofit medical college since 1978, awaits the “blessing” of the U.S. Department of Education, said David Raab, chief of staff to Touro College President Alan Kadish. “Without such blessing, the institution cannot offer federal student loans,” he said.
The Roman Catholic archdiocese and Touro officials have extended their agreement through May 31, said NYMC spokeswoman Donna Moriarty. The agreement, which transfers control of the college on the Westchester Medical Center campus to an affiliate of Touro, a nonprofit Jewish institution, was signed in December 2009.
“The wheels of our government move a little slowly sometimes,” said Raab. “We are optimistic that we will get their approval in a timely fashion.” He said there are “no problems” that would scuttle the deal closing.
A 2008 audit by the inspector general”™s office of the federal Department of Education found that Touro officials, over a three-year period ending in 2005, improperly disbursed about $36 million in federal loan and grant aid to students at nine Touro locations outside New York City that were deemed ineligible for federal Title IV funds. Federal officials, though, certified all nine locations as eligible branch campuses by 2008.
At Touro, “We are very anxious to see this transaction happen,” said Raab. “I can tell you unequivocally that the board and management are totally committed to this transaction and to see it through.
“We think we have a wonderful collaboration with New York Medical College management,” he said.
