N.Y. reportedly offering settlements in student loan investigation (AP/CNN)

[eppur_se_muova]

ALBANY, New York (AP) -- New York state is offering colleges settlements in its investigation into student loan kickbacks if the schools promise to follow a code of conduct, according to published reports.

Attorney General Andrew Cuomo sent settlement agreements to colleges around the country, the Chronicle of Higher Education reported Friday. If the colleges didn't sign, Cuomo threatened to serve them with subpoenas, the Chronicle reported.

Six lenders and more than 60 public and private colleges around the country have been swept up in Cuomo's investigation into the $85 billion college loan industry. His investigators say they have found numerous arrangements made to benefit 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 in return for directing students to the lenders.

A spokesman for Cuomo would not confirm the report.

"The attorney general has had talks with colleges and lenders as the investigation has been widening," said John Milgrim. "Any settlements, if and when they happen, will be announced when they are finalized."
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more: http://www.cnn.com/2007/EDUCATION/04/01/student.loan.probe.ap/index.html