Friday, March 16, 2007
Cuomo said he notified more than 400 colleges and universities nationwide, including all in New York State, to end such deceptive practices. Cuomo said he is actively investigating at least 100 schools. Cuomo would not divulge which schools were being investigated, but they include some Ivy League institutions.Kickbacks on loans, all-expenses-paid trips for financial aid officers, complimentary computer systems, and lines of credit for schools to use are all alleged. All the lenders interviewed in the AP story deny the charges. Neither has Cuomo named any one institution, or given specific examples of the shady dealings.
�There is an unholy alliance between banks and institutions of higher education that may often not be in the students� best interest,� Cuomo said. �The financial arrangements between lenders and these schools are filled with the potential for conflicts of interest. In some cases they may break the law.�
Unsurprisingly, Congress wants a "thorough review". Calls for passage of the Student Loan Sunshine Act will increase.
Labels: higher education