Student loans

State Takes Lead in Setting Industry-wide Standard

May 30, 2007 -- Albany, NY (May 30, 2007) – New York Governor Eliot Spitzer and Attorney General Andrew M. Cuomo today announced the signing of landmark legislation to protect students and their families from abuses and conflicts of interest in the student loan industry. Under this legislation, New York becomes the first state to offer a comprehensive solution to widespread abuse in the student loan industry, which has affected millions of working and middle class families nationwide.    » read more »

With this Agreement, Nation’s Top Five Largest Student Loan Providers Will Abide By Cuomo’s Code of Conduct

NEW YORK, NY (May 29, 2007) – New York Attorney General Andrew M. Cuomo today announced an agreement regarding student loan practices with Wells Fargo, the nation’s fifth largest provider of student loans. In the latest development in Cuomo’s nationwide investigation, San Francisco-based Wells Fargo has agreed to abide by the Attorney General’s Code of Conduct for education loan practices.    » read more »

Cuomo visits Buffalo suburb of Cheektowaga to announce Student Bill of Rights and new protections in New York State

Buffalo, NY (May 24, 2007) – New York State Attorney General Andrew M. Cuomo was joined by Western New York lawmakers today to launch a statewide college-loan education initiative and outline a new Student Bill of Rights to protect students and families from deceptive practices found throughout the student-lending industry.    » read more »

Comprehensive agreement bans solicitation, acceptance of gifts from student loan lenders

May 19, 2007 -- AUSTIN – Texas Attorney General Greg Abbott and The University of Texas at Austin reached an agreement concerning conflicts of interest and deceptive practices within the student loan industry. The Attorney General’s Texas Higher Education Fair Lending Practices Agreement offers important protections for loan recipients and implements the nation’s most stringent education loan practice controls.    » read more »

May 15, 2007 -- Chicago, IL- On a conference call with student reporters, Barack Obama today called for reforming the student loan program by eliminating the costly subsidies to private lenders in favor of mandating that all federal student loans be provided through the direct loan program. According to one estimate, the money spent on subsidies for guaranteed loans over the last few years would have been enough to provide every low-income college student an additional $4,000 in grant aid.    » read more »

Drexel University Agrees to Refund $250,000 to Students; Capella University Aids in AG’s Investigation; Both Universities Accept Cuomo’s Code of Conduct

NEW YORK, NY (May 15, 2007) – New York Attorney General Andrew M. Cuomo today announced agreements with two more universities in his ongoing investigation into the student loan industry: Drexel University and Capella University.    » read more »

May 14, 2007 -- WASHINGTON, D.C.-- Today, Senator Edward M. Kennedy released the following statement in reaction to the University of Texas at Austin's announcement that they've terminated Lawrence Burt, head of the University's Office of Student Financial Services.

Kennedy has an ongoing investigation into the student loan industry and inquired about Mr. Burt's connections to lender Student Loan Xpress on April 11, 2007.    » read more »

Student Loan Provider to Change Business Practices, Give $3 Million to National Education Fund, and Assist with Investigation of Lending Officials

NEW YORK, NY (May 10, 2007) – New York Attorney General Andrew M. Cuomo today announced an agreement with Student Loan Xpress, Inc. (SLX) and its parent company CIT Group Inc. (CIT), a leading provider of student loans.    » read more »

May 9, 2007 -- WASHINGTON, D.C—Today, Senator Edward M. Kennedy, Chairman of the Health, Education, Labor and Pensions Committee, released the following statement in reaction to the House of Representatives passage of the Sunshine Act.    » read more »

Says next appointee should put interests of students first and banks last

May 9, 2007 -- WASHINGTON, DC -- U.S. Senator Barack Obama (D-IL) today released the following statement on the resignation of Theresa S. Shaw, the top federal student loan official:

“President Bush should appoint a chief executive for the Office of Federal Student Aid who will put college students first and the banking industry last.    » read more »

Alumni Associations Under Suspicion – Ohio Student Loan Probe Widens as Attorney General Dann Looks Into Alumni-Lender Marketing Arrangements in Ohio

May 09, 2007 -- Columbus – Ohio Attorney General Marc Dann opened a new front in the student loan investigation today after one of Ohio’s top public universities acknowledged a financial arrangement between its alumni association and a lender. In successive letters to Ohio’s private and public university alumni associations, Dann demanded details and documentation of all deals between lenders and alumni groups.    » read more »

New York sets national example with industry-wide standards

ALBANY, NY (May 7, 2007) – New York Attorney General Andrew M. Cuomo, Senate Majority Leader Joseph L. Bruno and Assembly Speaker Sheldon Silver today announced the passage of landmark legislation to protect students and their families from exploitation by conflicts of interest in the student-loan industry. The passage of the bill makes New York’s Legislature the leader in offering a solution to the student-loan scandal that has affected millions.    » read more »

Panel Discussion Focuses on Expanding Access, Creating Job Opportunities for Graduates

ANNAPOLIS, MD (May 3, 2007) - Today, Maryland Governor O’Malley met with student leaders at the University of Maryland, College Park to discuss keeping college education affordable and expanding opportunities for higher education in Maryland.    » read more »

General Treasurer says RISLA must create firewall between College Planning Center, which offers advice on loans, and Nelnet—an affiliated national student loan provider

(PROVIDENCE 5/3/07) -- Rhode Island General Treasurer Frank Caprio is calling on the Rhode Island Student Loan Authority (RISLA) to take immediate steps to build a firewall between their non-profit College Planning Center, which answers questions from students about college loans and other issues, and an affiliated private lender which works with RISLA.    » read more »

Division of Consumer Affairs Investigating Allegations That Lenders Have Made Improper Payments to Promote Lending Programs

May 4, 2007 -- Trenton, NJ – New Jersey Attorney General Stuart Rabner announced today that his office and the Division of Consumer Affairs have launched an investigation into the student loan industry in New Jersey in light of recent allegations that lenders have made improper payments to have colleges promote specific loan companies to students.    » read more »