NEW YORK, NY March 23, 2007 —New York Attorney General Andrew Cuomo says he'll sue a major student loan business for deceptive practices. The suit will is the first one filed in a nationwide investigation of the $85 billion student loan industry. WNYC's Elaine Rivera reports.

REPORTER: Cuomo says he will file a lawsuit against the California-based Education Finance Partners. He charges that the firm has illegal revenue sharing arrangements with more than 60 schools nationally including New York-based colleges such as Fordham and Long Island Universities.

CUOMO: In short, the investigation has revealed that lenders are essentially given financial rewards to universities in return for students steered to the loan company.

REPORTER: Cuomo says the practice limits students' access to other lenders who could offer better rates. He's also investigating the schools involved. In a statement, the top executive for Education Finance Partners says they are fully prepared to defend their business practices. For WNYC, I'm Elaine Rivera.