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New Regulations for Student Loans

Tuesday, May 08, 2007

New York's colleges and universities will no longer be allowed to steer students towards preferred lenders or receive kickbacks from those lenders for that business.

REPORTER: In Albany, the legislature has passed a bill that outlaws those practices. Responsible for the national attention cast onto the student loan industry, Attorney General Andrew Cuomo praised the Senate and Assembly.

CUOMO: And we can now say if you go to a New York school, you're protected. More so than any other state in the nation.

REPORTER: Governor Spitzer is expected to sign the bill into law. Cuomo's investigation into the student financial aid industry continues - he recently expanded it to include alumni associations.

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