Citibank et al.

New York, NY: (Apr-03-07) In a lawsuit that followed as part of New York Attorney General Andrew Cuomo's office' probe into the college loan industry, three dozen schools and Citibank agreed as part of the settlement to make the student loan process fairer to students and their families. The investigations revealed numerous arrangements that benefited schools and lenders at the expense of students were being carried on, including lenders providing all-expenses-paid trips to exotic locations for college financial aid officers who directed students to the lenders. In the settlement agreement, six schools agreed to reimburse students a total of $3.27 million, and Citibank, which does business at about 3,000 schools, agreed to donate $2 million to a national fund created to educate students and parents about the financial aid industry. The University of Pennsylvania will pay $1.62 million to reimburse students. New York University will return $1.39 million, and Syracuse University, Fordham University, Long Island University and St. John's University will pay lesser amounts. [LOS ANGELES TIMES: STUDENT LOAN ANTITRUST]

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Published on Apr-6-07