Colleges asked to review loans
The U.S. government asked 921 American colleges to scrutinize internal practices, expressing concern that the schools didn’t use competing lenders.
As many as 80% of students at the targeted schools borrowed from a single lender, said Katherine McLane, a spokeswoman for the Department of Education. In letters sent June 29, the government urged the schools to ensure that students’ interests are represented.
Congress and New York Atty. Gen. Andrew Cuomo have conducted investigations, finding that lenders had undisclosed arrangements to provide colleges or their staffs with payments, consulting fees, company shares and other perks.
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