This is pretty shady on both ends. Colleges have been taking kickbacks from lenders so the lenders can be “preferred” lenders that the colleges then push on their students. So, the lenders charge inflated rates and fees and the U’s get paid off. Cozy. Apparently this may be going on all over the country.

So far, six schools — the University of Pennsylvania, New York University, Syracuse University, Fordham University, Long Island University and St. John’s University — have agreed to reimburse students a total of $3.27 million for inflated loan prices caused by revenue sharing agreements, Cuomo said. The schools will return money to students who took out loans during the time the revenue sharing agreement was in effect. Students will be refunded based on the amount they were loaned.

I always new there were things shady in the college loan biz. These people dangle and are happy to give loans worth upwards of $100,000 to 17 year olds who’ve never held a job. Contrast that with a contortionist act a 40 year old goes through trying to get a small business loan of $20,000. Well, they got caught. My Grandfather never had any respect for bankers. He used to say, “it doesn’t take any skill to lend money”.

Cuomo to Announce Settlement With Lender - New York Times