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Home / NY: AG Settles With Nebraska Company In Loan ProbeNY: AG Settles With Nebraska Company In Loan Probe
Last Updated on Friday, 9 May 2008 09:44 Written by rslcpol Friday, 9 May 2008 09:44
From Business First:
Nelnet would pay alumni associations either an annual fee or payments for every loan consolidation application those organizations directed to them.
“By paying for exclusive referrals of their loans, Nelnet violated the trust that students and recent graduates place in their schools and alumni associations,” said a statement from Attorney General Andrew Cuomo, whose office has reached deals with more than a dozen student loan operators across the country.
The Nebraska company has also agreed to stop paying alumni associations — including those at Niagara University and State University of New York schools Buffalo and Fredonia — for exclusive referrals of their consolidated loans.