Citibank, Schools Settle Student Loan Probe
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A settlement with three dozen schools and a major lender announced yesterday will make the student loan process more fair to students and their families, the state attorney general, Andrew Cuomo, said.
As part of the settlement, six schools agreed to reimburse students a total of $3.27 million, Mr. Cuomo said, and Citibank, which does business at about 3,000 schools, agreed to donate $2 million to a national fund created to educate students and parents about the financial aid industry.
All 29 four-year State University of New York campuses, New York University, University of Pennsylvania, St. John’s University, Syracuse University, Fordham University, St. Lawrence University and Long Island University — agreed to abide by a code of conduct as part of a settlement. The agreements are part of a nationwide probe by Mr. Cuomo’s office into student lending. None of the schools admitted any wrongdoing.
