Resources on Preferred Lender Program Investigations and Practices

New York Attorney General Documents and Press Releases

• Documents
  
  February 1, 2007 Letter to 60 Institutions Seeking Information on Preferred Lender Programs
  
  March 22, 2007 Proposed Notice of Litigation to Education Finance Partners (EFP)
  
  March, 2008 Letter Sent to Presidents of New York Institutions and Selected Other Institutions
  
  Proposed Settlement Agreement Sent to Selected Institutions re Alleged Illegal Practices Concerning Preferred Lenders
  
  April 11, 2007 Assurance of Discontinuance--Sallie Mae
  
  April 19, 2007 Notice of Intention to Sue--Drexel University
  
  Request for Production of Documents re Alumni Association Consolidation Loan Marketing Arrangements
  
  Agreement with Columbia University
  
  July 31, 2007 In the Matter of Nelnet, Inc.-- Assurance of Discontinuance
  
  Settlement Agreement with Student Financial Services (SFS)
  
  January 22, 2008 New York Attorney General Subpoena
  Complete text (8 pages) of subpoena sent by the New York Attorney General to 15 institutions seeking documents and information related to the operation of the study abroad programs at those institutions.
  
  


• Press Releases
  
  February 1, 2007 Attorney General Andrew Cuomo Launches Broad Expansion of Investigation into Potential Conflicts of Interest in the Student Loan Industry
  
  March 15, 2007 Attorney General Andrew Cuomo Reveals Deceptive Practices in the College Loan Industry; Sends Letters to More than 400 Colleges and Universities Cautioning Them of Potential Conflicts of Interest; Advises College-Bound Students to Protect Themselves
  
  March 22, 2007 Attorney General Andrew Cuomo Announces First Legal Action in College Loan Industry Investigation
  
  April 2, 2007 Attorney General Announces Landmark Student Loan Agreements - Schools to Adopt New College Code of Conduct and Repay Students
  
  April 16, 2007 Attorney General Cuomo, Senate Majority Leader Joseph Bruno and Assembly Speaker Sheldon Silver Announce Bill to Protect College Bound Students from Deceptive Practices
  
  April 19, 2007 Cuomo Announcese First Legal Action Against A School in Student Loan Investigation
  
  April 20, 2007 Drexel University Press Release
  
  May 3, 2007 Attorney General Cuomo Opens New Front in Expanding College Loan Investigation
  
  May 15, 2007 Attorney General Cuomo Announces Agreements with Two Universities
  
  May 29, 2007 Attorney General Cuomo Announces Agreement with Wells Fargo
  
  May 31, 2007 Attorney General Cuomo Announces Agreements with Columbia University and the National Association of Student Financial Aid Administrators
  
  June 20, 2007 Attorney General Cuomo Announces Agreement with Three Lenders
  
  July 31, 2007 Attorney General Cuomo Anounces Settlement with Nation's 2nd Largest Loan Consolidator
  Nelnet Agrees to End Payoffs to More Than 100 Alumni Associations, Will Pay $2 Million to Educate College Bound Students about Loan Options
  
  August 1, 2007 Cuomo Expands College Loan Investigation: Scrutinizes Deals Between Student Loan Provider and University Athletic Departments
  
  


• Other Items
  
  Student Lending Brochure
  
  College Loan Code of Conduct
  
  New York General Business Laws Section 349 and 350 (Consumer Protection from Deceptive Acts and Practices)
  
  New York Consolidated Laws, Article 5, Sections 60 - 74 (General Duties of Attorney General)
  
  Direct Marketing Code of Conduct
  
  

American Council on Education (ACE) Documents

April 16, 2007 Letter to Presidents and Chancellors

April 16, 2007 Background Information for Presidents and Chancellors on Recent Controversy Involving Student Loans

April 16, 2007 Code of Conduct Summary Chart

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NAFSA

August 15, 2007 NAFSA to Convene Task Force to Study Institutional Management Issues in Study Abroad

January, 2008 Strengthening Study Abroad: Recommendations for Effective Institutional Management for Presidents, Senior Administrators, and Study Abroad Professionals

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NASFAA

NASFAA Statement of Ethical Principles

NASFAA Mongraph: Guide to Developing a Preferred Lender List

March 2006 Avoiding Illegal Lender Inducements / Blain B. Butner and Aaron D. Lacey (Student Aid Transcript, NASFAA)

March 19, 2007 Letter to NY Attorney General Andrew Cuomo

April 11, 2007 Wall Street Journal Offers a Critical Look at NASFAA Policy Decision

April 23, 2007 NASFAA Board Adopts Resolution to Develop Code of Conduct

May 2007 Statement of Ethical Principles And Code of Conduct For Institutional Financial Aid Professionals

May 2007 NASFAA Annual Conference Contributors, Exhibitors and Sponsors Policy

June 28, 2007 Message to Members from NASFAA President on Recent Events in Student Loan Industry

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Media Coverage

February 16, 2007 New York Asks 60 Colleges to Explain Ties to Lenders (Chronicle of Higher Education)

March 13, 2007 Change of Heart on Lender Oversight (InsideHigherEd.com)

March 16, 2007 "Deceptive Practices" in Loan Industry (Inside HigherEd.com)

March 23, 2007 Taking on Lenders and Colleges (Inside HigherEd.com)

March 30, 2007 New York Attorney General Accuses Colleges of Deceiving Students on Their Loans (Chronicle of Higher Education)

April 2, 2007 Cuomo Takes Aim at Colleges (InsideHigher Ed.com)

April 3, 2007 The First Dominos Fall (InsideHigherEd.com)

April 6, 2007 U.S. Officials Scrutinize Colleges' Deals with Lenders (Chronicle of Higher Education)

April 5, 2007 Cuomo's Smoking Gun (InsideHigherEd.com)

April 7, 2007 Student Loans: Ethics Before Stock Options (The Washington Post)

April 10, 2007 Loan Scandal Escalates (InsideHigherEd.com)

April 10, 2007 Probe of Colleges' Relationships with Lenders Expands to 3 More College Officials (Chronicle of Higher Education)

April 11, 2007 Advisory Boards That Include College Officials Are Common But Most Offer No Pay (Chronicle of Higher Education)

April 13, 2007 Investigation of Lenders' Ties to Colleges Expands (Chronicle of Higher Education)

April 12, 2007 Cuomo Bags a Big One (InsideHigherEd.com)

April 12, 2007 Sallie Mae Will Pay $2 Million in New York Investigation of Lenders' Practices (Chronicle of Higher Education)

April 12, 2007 NASFAA Under the Microscope (Higher Ed Watch, The New America Foundation)

April 13, 2007 Shaking Up Loan Industry (InsideHigherEd.com)

April 13, 2007 Financial Aid Officials Blame Lack of Guidance for Relationships with Lenders Now Under Scrutiny (Chronicle of Higher Education)

April 15, 2007 Lenders Sought Edge Against U.S. in Student Loans (New York Times)

April 15, 2007 Lenders Misusing Student Database (The Washington Post)

April 16, 2007 Student Lender to Pay 2.5 Million Settlement (New York Times)

April 16, 2007 Troubles Mount for Student Loan Industry (InsideHigherEd.com)

April 17, 2007 Cuomo Expands Student Loan Investigation to 13 More Lenders and Announces 3rd Settlement (Chronicle of Higher Education)

April 17, 2007 Student Loans, the Baby, and the Bathwater (InsideHigherEd.com)

April 18, 2007 U.S. Suspends Lender Access to Borrower Database (InsideHigherEd.com)

April 19, 2007 Calling Out Spellings on Student Loans (InsideHigherEd.com)

April 20, 2007 Cuomo Says He Will Sue Drexel U. Over Student Loan Deal; Drexel Says It Will Fight (Chronicle of Higher Education)

April 20, 2007 The Battle is Joined (InsideHigherEd.com)

April 20, 2007 Student Loan Investigation Sweeps Up More Colleges (Chronicle of Higher Education)

April 23, 2007 Updates on the Loan Scandal (InsideHigherEd.com)

April 23, 2007 NelNet Signs Voluntary Agreement with Nebraska Attorney General But Remains Under Scrutiny in New York (Chronicle of Higher Education)

April 23, 2007 Panel's Negotiations Over Preferred Lender Lists End in Stalemate (Chronicle of Higher Education)

April 24, 2007 Attorneys General Announce First Multi-State Settlements in Expanding Student-Loan Inquiry (Chronicle of Higher Education)

April 24, 2007 Financial Aid Association will Ban Studen Loan Companies from Sponsoring Conference Events (Chronicle of Higher Education)

April 24, 2007 The Cuomo Effect Spreads (InsideHigherEd.com)

April 25, 2007 Secretary of Education Creates Committee to Deal with Student Loan Issues (Chronicle of Higher Education)

April 25, 2007 Financial Aid Association Says Code of Conduct Lacks Final Approval and May Be Revised (Chronicle of Higher Education)

April 27, 2007 Colleges Begin to Feel Political Fall-Out From Student Loan Scandal (Chronicle of Higher Education)

May 1, 2007 Warnings on Student Lenders Unheeded (The Washington Post)

May 3, 2007 Notes from a Loan Scandal (InsideHigherEd.com)

May 3, 2007 Presidents and the Student Loan Mess (InsideHigherEd.com)

May 3, 2007 Rhode Island Center that Answers Students' Questions About Loans is Staffed by a Loan Company (Chronicle of Higher Education)

May 4, 2007 New Targets in Student Loan Inquiry (InsideHigherEd.com)

May 7, 2007 Another Lender Relationship Questioned (InsideHigherEd.com)

May 11, 2007 Accountability in the Student Loan Industry (The Chronicle of Higher Education)

May 10, 2007 Nearly Unanimous Vote, Divergent Views (InsideHigherEd.com)

May 15, 2007 Two More Universities Settle with Cuomo in Lender Controversy (Chronicle of Higher Education)

May 15, 2007 Drexel to Cuomo: Um, Never Mind (InsideHigherEd.com)

May 15, 2007 The First Casualty (InsideHigherEd.com)

May 15, 2007 U-of-Texas at Austin Fires Financial Aid Director Implicated in Student Loan Scandal (Chronicle of Higher Education)

May 17, 2007 Three Lenders Sweeten Student Loan Discounts (USA Today)

May 17, 2007 Colleges Serving as Their Own Lenders Brace for Battle as Congress Cracks Down on Ethics (Chronicle of Higher Education)

May 21, 2007 Cuomo, Trade Group Debate Code for College Aid Officials (Newsday)

May 22, 2007 Two More Financial Aid Directors Fall (InsideHigherEd.com)

May 22, 2007 Two More University Officials Lose Jobs in Student Loan Scandal (Chronicle of Higher Education)

May 31, 2007 Hopkins Aid Officer Was Paid More By Lenders Than Disclosed (Washington Post)

June 1, 2007 The Selling of Student Loans (The Chronicle of Higher Education)

June 1, 2007 Cuomo Extends His Reach (InsideHigherEd.com)

June 1, 2007 Columbia U. and Financial-Aid Administrators' Group Agree to Settlements in Student-Loan Inquiry (Chronicle of Higher Education)

June 4, 2007 U.S. Offers Loan Reforms of Its Own (InsideHigherEd.com)

June 4, 2007 Education Department Proposes New Rules for Student Loan Programs to Crack Down on Abuses (Chronicle of Higher Education)

June 7, 2007 Taming the Student Loan "Wild West" (InsideHigherEd.com)

June 7, 2007 Cuomo Takes Aim at Federal Regulators and Education Department in Senate Hearing on Student-Loan Scandal (Chronicle of Higher Education)

June 7, 2007 Financial Aid Officials at Capella U and Widener U Lose Jobs in Loan Investigation (Chronicle of Higher Education)

June 8, 2007 Student Loan Inquiry Veers into Issues of Race (Chronicle of Higher Education)

June 15, 2007 A "Systemic" Scandal (InsideHIgherEd.com)

June 15, 2007 Johns Hopkins Settles with New York Attorney General in Student Loan Investigation (The Chronicle of Higher Education)

June 15, 2007 Abuses in Lenders' Relationships with Colleges were Widespread, Senator's Report Says (The Chronicle of Higher Education)

June 18, 2007 Interpreting the Sunshine Act (InsideHigherEd.com)

June 20, 2007 Emerson College Fires Dean Who Consulted for Loan Company (The Boston Globe)

July 9, 2007 From Anger to Acceptance (InsideHigherEd.com)

July 9, 2007 Informing Students About Private Loans (InsideHigherEd.com)

July 9, 2007 Financial Aid Officials Consider Effects of Loan Scandal and Forgo Perks from Lenders at Annual Meeting (Chronicle of Higher Education)

July 10, 2007 Education Department, On the Case (InsideHigherEd.com)

July 10, 2007 Education Department Describes Warnings to Colleges That Rely on a Single Lender (Chronicle of Higher Education)

July 16, 2007 Student Aid Officers Struggle to Put Scandals Behind Them (The Chronicle of Higher Education)

July 30, 2007 Inside the Cuomo Probe (InsideHigherEd.com)

July 31, 2007 Examining Vendor-College Ties (InsideHigherEd.com)

August 1, 2007 Cuomo Targets Fire Back (InsideHigherEd.com)

August 2, 2007 Student Loan Potpourri (InsideHigherEd.com)

August 10, 2007 N.Y Attorney General to Investigate Athletic Programs' Student-Loan Practices (The Chronicle of Higher Education)

August 10, 2007 Spellings Describes Scrutiny of Colleges in Lending Controversy, Urges Use of Guidelines (Chronicle of Higher Education)

August 10, 2007 Embrace Student Loan Reforms, Spellings Urges (InsideHigherEd.com)

August 10, 2007 Nebraska Attorney General Attacks Andrew Cuomo (HigherEdWatch.org)

August 13, 2007 In Study Abroad, Gifts and Money for Universities (The New York Times)

August 14, 2007 Study Abroad Under Scrutiny (InsideHigherEd.com)

August 14, 2007 Advice for the Education Department (InsideHigherEd.com)

August 15, 2007 Study Abroad Providers Are Target of New Investigation by New York Attorney General (The Chronicle of Higher Education)

August 16, 2007 Study Abroad is New Focus of Inquiry into Perks (The New York Times)

August 17, 2007 Cuomo Spokesperson Says Attorney General's Office Finds Problems "Under Every Rock We Turn Over" (The Chronicle of Higher Education)

August 27, 2007 Colleges Can Expect Subpoenas in Study Abroad Investigations (The Chronicle of Higher Education)

September 4, 2007 Permissible Preferred Lender Lists (InsideHigherEd.com)

September 5, 2007 Ask and Ye Shall Receive (InsideHigherEd.com)

September 5, 2007 Kennedy Outlines More Apparent Conflicts in New Report on Student Loan Industry (The Chronicle of Higher Education)

September 5, 2007 Ethics and Study Abroad (The Chronicle of Higher Education)

September 5, 2007 Study Abroad Blossoms Into Big Business (The Chronicle of Higher Education)

September 16 Colleges, Pressed by Spellings and Cuomo, Step Up Scrutiny of Possible Conflicts in Their Business Relationships (The Chronicle of Higher Education)

September 21, 2007 Colleges Plot Strategy on Conflict of Interest (InsideHigherEd.com)

September 21, 2007 College Leaders Seek Guidelines for Avoiding Conflicts in Business Dealings (Chronicle of Higher Education)

September 22, 2007 Even Cozier Deals on Campus (Business Week)

October 3, 2007 What's A Financial Aid Director to Do? (InsideHigherEd.com)

October 10, 2007 10 Rules for Avoiding Conflict of Interest (The Chronicle of Higher Education)

November 1, 2007 Education Department Issues New Student Loan Regulations (The Chronicle of Higher Education)

November 26, 2007 Education Department's Lender Inquiry Still in Early Phase (The Chronicle of Higher Education)

December 12, 2007 Cuomo Announces Settlement with Student Loan Company Tied to NCAA Division I Schools

December 12, 2007 A Reminder from New York (InsideHigherEd.com)

January 3, 2008 What's Ahead in Student Loans for 2008? (InsideHigherEd.com)

January 14, 2008 News Analysis: Whatever Happened to the Study Abroad Investigation? (The Chronicle of Higher Education)

January 16, 2009 Student-Loan Companies Sit and Watch as Regulatory Machinery Eats Away at Profits (The Chronicle of Higher Education)

August 13, 2007 In Study Aboard, Gifts and Money for Universities (The New York Times)

January 16, 2008 International Education Group's Report Provides Principles but not Prescriptions for Study Abroad (The Chronicle of Higher Education)

January 21, 2008 Study Abroad Inquiry Expands (InsideHigherEd.com)

January 21, 2008 Cuomo Expands Investigation of Study-Abroad Programs to Colleges (The Chronicle of Higher Education)

January 21 Investigation of Study Abroad Widens (The New York Times)

January 24, 2008 Alumni Credit Cards Offer Rewards to Stem Decline in Use (The Chronicle of Higher Education)

February 6, 2008 Taking Conflict of Interest Seriously (InsideHigherEd.com)

February 13, 2008 Slow Progress on Institutional Conflicts Policies (InsideHigherEd.com)

February 18, 2009 Loan Guarantor and Attorney General Settle in New Jersey (InsideHigherEd.com)

February 28, 2008 Cuomo Widens Probe of Kickbacks Tied to Student Loans (Newsday)

February 29, 2008 Cuomo's Latest Targets Include Universities' Deals with Credit Card Providers (The Chronicle of Higher Education)

March 3, 2008 Ethics for Managing Study Abroad (InsideHigherEd.com)

March 10, 2008 Admissions Group to Tackle Conflict of Interest Issues (InsideHigherEd.com)

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Other Documents

March 23, 2007 Minnesota Attorney General Press Release

Minnesota Attorney General Student Loan Guide

April 2, 2007 Statement by University of Pennsylvania

Illegal Inducements and Preferred Lender Lists (from FinAid.org)

Student Loan Marketing Association v. Riley 112 F. Supp. 2d 38 (D.D.C. 2000)

April 10, 2007 Letter from South Carolina Office of Attorney General to Office of New York Attorney General

Special Report: The Student Loan Scandal (The New America Foundation)

November 2004 Guidelines for FFELP Industry Practices issued by the Consumer Bankers Association (CBA), the Education Finance Council (EFC) and The National Council of Higher Education Loan Programs

Nelnet Agreement with Nebraska Attorney General

Nelnet Code of Conduct

April 23, 2007 Missouri Attorney General Press Release re Washington University

Missouri et al. v. Washington University--Stipulation and Assurance of Voluntary Compliance

April 25, 2007 Johns Hopkins University Press Release

April 27, 2007 AAU Statement of Principles on Relationships with Student Loan Providers

New York S4524 "Student Lending Accountability, Transparency and Enforcement (SLATE) Act (as passed by NY State Senate)

Law Firm Analysis of Application of New York Law to Institutional Preferred Lender Relationships

May 14, 2007 University of Texas Special Investigative Report

Honest Lending, Fair Lending: A Guide to Exposing Conflicts of Interest in School Financial Aid Offices (CampusProgress.org)

Agreement between University of Texas-Austin and Texas Attorney General

Press Release by Texas Attorney General's Office

NelNet Alumni Association Partners

CASE Statement Regarding Alumni Associations and Loan Consolidators

Consumer Bankers Association Code of Conduct (May 2007)

Comparison of Federal and State Legislation, Federal Regulations and Voluntary Codes of Conduct (Project on Student Debt)

Sample Provisions from a Selection of Pending and Enacted Legislation, Regulations and Codes of Conduct / Joel M. Rudnick. Presented at the 47th NACUA Annual Conference, June 2007.

July 2007 Helping Families Finance College: Improved Student Loan Disclosures and Counseling / Consumers Union.

September 5, 2007 New Jersey Attorney General: New Jersey Student Loan Code of Conduct for Institutions of Higher Education

The New America Foundation: Special Report: Student Loan Scandal

Connecticut Attorney General Code of Conduct for Private Institutions

Comparison of Current/Proposed Laws and Codes of Conduct Related to Student Loan Practices Revised June 4, 2007 (University of California)

New Jersey Student Loan Code of Conduct for Institutions of Higher Education

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