NY AG Names 3 Lenders Using Schools In Loan Decisions (CNN Money)
"New York Attorney General Andrew Cuomo identified three companies Tuesday that he says are setting interest rates for student loans based in part on the school a student attends," reports CNN Money. "On a conference call with reporters Tuesday, Cuomo said CIT Group Inc.'s (CIT) Student Loan Xpress unit, Nelnet Inc. (NNI) and Northstar Education Finance Inc. have all used underwriting practices that take the school into account in making lending decisions and that he has equated to 'redlining' in the home mortgage industry. The attorney general said the three lenders he mentioned on the call are 'by no means the extent of it' and the practice is 'very, very widespread' in the industry."
You can read the complete June 19, 2007 CNN Money article on-line.
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