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Another school has taken measures to correct its part in the student loan scandal unraveled in an investigation by New York State’s Attorney General Andrew Cuomo. As part of an agreement with the Attorney General’s office, St. John’s University will be returning money to a number of students who took loans from the private lenders on the school’s “preferred lenders” list. The “kickback” scandal has St. John's, New York University, Fordham University, Long Island University, Syracuse University, and the University of Pennsylvania reimbursing a total of $3.2 million to affected students; the Attorney General has said that “preferred lender” should imply the best interest rates for students rather than a contribution from a loan company to a university. At St. John’s, the $80,553 received over three academic years was used to pay “administrative costs.” The Pace Press reports that Pace University was subpoenaed by the same Attorney General’s office after failing to sign an Agreement on Code of Conduct. Pace is facing questions over an arrangement with Sallie Mae, surrounding undisclosed Sallie Mae employees providing financial aid information to student callers.

4/11/07  Read More from St. John's University
4/11/07  Read More from Pace University