Cuomo Plans To Sue Student Loan Company

Attorney General Andrew Cuomo said yesterday his office would sue a San Francisco student loan company he says is driving up the price of loans by giving kickbacks to colleges in exchange for business.

Mr. Cuomo said the suit would seek $1 million from Education Finance Partners, which is affiliated with 60 colleges, as well as force the company to detail its financial ties to universities.

The company's founder and CEO, Tamera Briones, said the prices borrowers pay are based on their risk profile, not whether they attend colleges affiliated with the company. She also said the money Mr. Cuomo called kickbacks is often reinvested into student aid programs.