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N.Y. AG settles case with student lender; company had sponsored Kansas athletics


New York Attorney General Andrew Cuomo's case against Student Financial Services has been settled, [the attorney general announced Tuesday][1].Cuomo had beeen investigating SFS, also known as University Financial Services, because of the relationships it had with 63 college athletic departments, including KU's.As part of the settlement, SFS will end all of its relationships with the 63 schools; end all agreements with five sports marketing companies, including Host Communications, which manages sponsorships for KU; launch a print advertising campaign in the largest circulating newspaper at each of the 63 schools, alerting students that they must protect themselves when shopping for a loan; and end the practice of providing cash-based incentives to students who refer their friends to the company for loans.Earlier this year, when the investigation was announced, KU associate athletic director Jim Marchiony said KU had a relationship with SFS that is no different than the relationship it has with Dillons or a local car dealership. He echoed those comments in an article appearing today on the Web site of [the Chronicle of Higher Education][2]. [1]: http://www.oag.state.ny.us/press/2007/dec/dec11b_07.html [2]: http://chronicle.com/daily/2007/12/950n.htm


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