During the 2007, then-Nyc Attorneys General Andrew Cuomo complained out of a keen “unholy alliance” ranging from specific well-known loan providers and universities. Their investigation unearthed that, for many years, popular financial listing was indeed a supply of abuse when you look at the pupil lending industry, in which he unwrapped period in which lenders presumably gave college or university authorities gifts, trips, and you will inventory payment in exchange for addition on schools’ popular financial directories. After the New york study, the country’s half a dozen largest loan providers at the very least twenty eight universities assented adjust particular methods.
That exact same seasons, while the Congress first started mulling reforms into the student loan community, numerous senators backed regulations so you’re able to exclude well-known bank directories. Continue reading “Even as Congress allowed common bank arrangements, they banned co-marketing”