Recently we reported that the Connecticut Student Loan Foundation faced tough questions in light of state audits questioning its expenditures such as excessive bonuses and golf club memberships.  CSLF also faced difficult economic times and many believe the organization will be out of money by the end of the calendar year.  The Foundation has not been aided by discussion of ending the federally subsidized student loan program. 

Yesterday, bad shifted to worse when nine of the 14 members of the board of directors resigned after requests to the legislature for indemnity were denied.   By strange legislative drafting, several members of the board selected by statute have immunity while those appointed by the Governor do not.  Through a media statement, Governor Jodi Rell expressed her disappointment "It's unfortunate that it came to this, but the legislature was unwilling to give the directors of the Connecticut Student Loan Foundation the protections that the members of any other state board or commission enjoy.”