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BusinessBusiness

N.Y. settles with lender in student loan probe

By: | TriCities.com
Published: December 12, 2007

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NEW YORK (AP) - New York Attorney General Andrew Cuomo has

settled with a student loan consolidation company that paid fees to

colleges and sports departments to help it market student loans

directly to students.

Cuomo says Student Financial Services paid fees to schools,

their athletic departments and sports marketing firms for steering

students to the lender.

The company had contracts with 63 colleges to use the schools'

colors, mascots and team names to peddle loans to students. Those

schools included Virginia Commonwealth University, Virginia Tech,

James Madison, William & Mary and Old Dominion.

Under the settlement, the company admitted to no wrongdoing but

agreed to end the lending-related agreements with the schools and

five sports marketing companies.

(Copyright 2007 by The Associated Press. All Rights Reserved.)