House passes new rules to govern college lending
Washington, D.C. ? With the student loan industry coming under harsh criticism, the House on Wednesday easily approved a bill aimed at curbing conflicts of interest and corrupt practices in college lending.
New York Attorney General Andrew Cuomo has been leading an investigation into the $85 billion industry that has turned up evidence that some colleges received a percentage of loan proceeds from lenders given preferred status by the schools – a practice Cuomo calls “kickbacks.” He also said some college loan officers received gifts from lenders to encourage them to steer borrowers their way.
“We will not allow this to continue,” Miller said, before the House approved the bill on a vote of 414-3. The matter now goes to the Senate, where similar legislation is pending.