A scandal in the $85-billion U.S. student loan industry expanded on Wednesday as officials raised questions about possible discriminatory practices by lenders to students based on where they attend school.
New York Attorney General Andrew Cuomo told a U.S. Senate committee that he is widening an investigation of student lenders to target [not only kickbacks by major student lenders, but also] loan underwriting standards and any “civil rights ramifications” that may result.
These standards may include where a student lives and what type of college he attends.
AP cites New York Attorney General Andrew Cuomo, at a hearing of the Senate Banking Committee: The $17 billion market for private loans has “become the most fertile ground for unscrupulous practices. Private loans are the Wild West of the student-loan industry.”
Look for ever more heavy-handedness by the federal government in masterminding higher education financing.