Settlement reached in New York student loan probe (Not just NY schools)

[eppur_se_muova]

Source: AP/CNN

NEW YORK (AP) -- A settlement with three dozen schools and a major lender announced Monday will make the student loan process more fair to students and their families, state Attorney General Andrew Cuomo said.

As part of the settlement, six schools agreed to reimburse students a total of $3.27 million, Cuomo said, and Citibank, which does business at about 3,000 schools, agreed to donate $2 million to a national fund created to educate students and parents about the financial aid industry.

All 29 four-year State University of New York campuses, New York University, University of Pennsylvania, St. John's University, Syracuse University, Fordham University, St. Lawrence University and Long Island University -- agreed to abide by the code as part of a settlement. The agreements are part of a nationwide probe by Cuomo's office into student lending. None of the schools admitted any wrongdoing.
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Cuomo's investigators say they have found numerous arrangements that benefited schools and lenders at the expense of students. In some cases, investigators said, lenders provided all-expense-paid trips for college financial aid officers to exotic locations who directed students to the lenders.

Read more: http://www.cnn.com/2007/EDUCATION/04/02/student.loan.probe.ap/index.html

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The $85 billion college loan industry has benefited quite a lot from lax oversight (there's *that* theme again) under the Bu**sh** maladministration. Nice to see another NY prosecutor going after the corporatist parasites.

[David Dunham]

1. Good job Cuomo.