Cuomo Settles Student Loan Investigation
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Attorney General Andrew Cuomo said yesterday he has settled his investigation of a student loan consolidation company that paid fees to colleges and sports departments to help it market student loans directly to students.
Mr. Cuomo says Student Financial Services Inc. of Clearwater, Fla., which also operates as University Financial Services, had agreements with some of the nation’s top universities that involved paying fees to the schools, their athletic departments, and sports marketing firms for steering students to the lender, using the schools’ colors, mascots, and team names to peddle loans.
Under the settlement, the company admitted to no wrongdoing but agreed to end the lending-related agreements with the schools and sports marketing companies; launch an advertising campaign warning students to protect themselves when looking for a loan, and end cash-based inducements.
