Eight universities agreed to stop accepting kickbacks from Citibank for private loan referrals, and five agreed to refund a total of $3.27 mil to thousands of students, following an investigation by NY Attorney General Andrew Cuomo (pictured).

The universities in cahoots with Citibank include New York University, University of Pennsylvania, Syracuse University, St. John’s, St. Lawrence University, Long Island University, and the State University of New York.

And this is only the beginning. Coumo’s office is currently “in negotiations” with around 60 other schools, and with other lenders.

Such arrangements create conflicts of interest, and harm consumers.

“Going to college is hard enough. Students shouldn’t have to worry about being exploited when they take out student loans,” said Sen. Edward Kennedy (D-MA) — BEN POPKEN

Millions to Be Repaid After College Loan Inquiry [NYT] (Thanks to Molly!)

Want more consumer news? Visit our parent organization, Consumer Reports, for the latest on scams, recalls, and other consumer issues.