New York Brings Other States Into Student Loan Probe

Published on:
18 April 2007 at 04:56 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00008839-new-york-brings-other-states-into-student/

Misery loves company. That’s why New York Attorney General Andrew Cuomo enlisted the support other states to help investigate kickbacks in the student loan industry.

During a conference call, officials brainstormed on strategies for investigating the agreements in which lenders have provided cash, gifts, trips, tuition payments, stock options and more to become a "preferred lender" at a college even if the lender doesn’t have the best rate or terms for students.

Cuomo’s office is investigating the financial relationship between at least 100 colleges and 13 lenders. Three more lenders agreed to change their business practices and paid a combined $6.5 million to end probes of their activities.