New York Attorney General Andrew M. Cuomo has taken the first legal action against a school in his nationwide student loan investigation. Cuomo announced a notice of intent to sue Drexel University in Pennsylvania over its revenue sharing agreements with Education Finance Partners.More here.Earlier this week, California Attorney General Edmund G. Brown Jr. demanded two California student-loan businesses produce records concerning their financial relationships with public and private universities, and vocational schools in California as part of his ongoing probe into the student-loan industry.
Sunday, April 22, 2007
Finally suing over the shady student loan practices
We'll be cleaning up this sort of thing for years to come:
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2 comments:
Oh yeah! Over at CollegeLoanSearch we're rooting for Drexel. After a failed NCAA basketball tourney bid, Drexel isn't taking any of this sitting down. We hope they drop down to the 6 ounce gloves for this one.
Go Drexel!.
Well, good for you.
Meanwhile:
Citibank, one of the largest providers of student loans, as well as five universities have agreed to pay $5.2 million to students and the New York State attorney general to resolve an investigation into student loan practices, Andrew M. Cuomo, the attorney general, announced yesterday.
Citibank, which at year’s end had $33.7 billion in student loans outstanding, agreed to pay $2 million into a fund to educate students and parents about student loans.
New York University, Syracuse, St. John’s and Fordham — all in New York — and the University of Pennsylvania will make payments of more than $3.2 million to student borrowers who received loans from companies that paid money to the institutions to steer students their way.
Though neither Citibank nor the universities admitted to any wrongdoing, they all agreed to adopt a code of conduct governing relations between student lenders and academic institutions. St. Lawrence University and Long Island University as well as the State University of New York also agreed to the code.
http://www.nytimes.com/2007/04/03/us/03loans.html?ex=1333252800&en=c0c06232fac8ffe7&ei=5088&partner=rssnyt&emc=rss
and:
Should families who need to borrow money for college rely on their school's preferred list of lenders?
Historically, the vast majority have. But the widening college-loan scandal has raised questions about how lenders get on those lists. Was it because they offered the best deals for students? Or did they offer the best deals to schools and, in some cases, financial aid officers?
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2007/04/08/BUGKNP3UD51.DTL
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