New York Takes Deeper Look Into Student Lending

New York Attorney General Andrew Cuomo is taking a closer look at potentially unethical student lending practices. From Yahoo!:

Concerned that guidance offered to students is tainted by conflicts of interests, Cuomo’s office asks schools to disclose if there are financial relationships with lenders and if any favors were offered to individual financial aid officers.

“My office is seeking to ensure that students are being steered toward lenders offering the most competitive rates, not those who offer the best perks to schools or financial aid administrators,” Cuomo said in a statement.

“When making recommendations on how to make tuition more affordable, there must be absolutely no conflict of interest at the expense of students and their families,” he said.

Spokesman for Sallie Mae and Nelnet separately said their companies are cooperating with Cuomo’s office.

Student lending is a shady business. Very shady. Why should a college have a “preferred lender” anyway? Who prefers them, exactly?—MEGHANN MARCO

New York expands student lending probe [Yahoo!]