Cuomo Goes After Student Lending Criteria, Is So Not Bored Of This Investigation Yet

What criteria do student loan companies use when determining which students to give loans to and how much to give? Don’t know? Neither does New York Attorney General Andrew Cuomo, but we’re pretty sure he’s going to find out. From the NYT:

“What criteria are they using in the underwriting of these loans?” Mr. Cuomo asked. “Parental income? Student income? Student creditworthiness? How about the school you attend? How is that weighted?”

While lenders have the right to consider a borrower’s credit record, he said, “there are also civil rights and legal ramifications to what criteria they use, and that’s what we’re looking at.”

He suggested that students at historically black institutions were sometimes charged higher interest rates and fees than other students.

Go get ‘em, Andy! —MEGHANN MARCO

Cuomo Plans to Broaden Student-Lending Inquiry [NYT]
(Photo:AP)

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  1. gwong says:

    Looks like Andy’s becoming an Eliot Spitzer type bulldog of an Attorney General. Good for him.

  2. JustAGuy2 says:

    “Parental income? Student income? Student creditworthiness? How about the school you attend?”

    I would hope they’re considering all these factors, so long as they’re correlated with repayment rate.

  3. Quattuor says:

    For everything bad and wrong with New York, we seem to generate Attorneys General that are actually willing to do their jobs.

    Go Cuomo The Younger!

  4. mikeycav says:

    “He suggested that students at historically black institutions were sometimes charged higher interest rates and fees than other students.”

    Before he plays the race card, I hope he looks at the general data of different demographics’ use of credit. It could be that African-Americans, STATISTICALLY, have worse credit ratings or debt/income ratios than other groups. I know Serbian immigrants who own a local store, home and car, and paid for all of it with cash, a normal way of doing business in Serbia. There credit ratingsa (when they apply) are excellent, since they own outright all of there possessions.

    Has he looked at historically Eastern European institutions to see if THEY have lower interest rates, and if true, how come we all can’t get them that low?