Fordham University to repay students after loan probe
Fordham University is one of several schools that have agreed to reimburse students after settling a nationwide loan probe with the New York attorney general.
Attorney General Andrew Cuomo said the schools were steering students toward "preferred" lenders who didn't necessarily represent students' best interests in exchange for kickbacks. The two-part settlement includes 36 colleges reimbursing students a total of $3.27 million. Citibank will also set aside $2 million to educate college-bound pupils and their parents about the loan industry.
The schools, which did not admit fault, have agreed to adopt the attorney general's code of conduct. Employees are now restricted from receiving anything of value from lenders and schools must disclose why lenders are on their lists. Fordham University released a statement saying it no longer participates in revenue-sharing opportunities with lenders and calls the code of conduct a constructive effort.
Many Fordham students who've taken out loans welcome the change and say they hope they qualify to receive an individual check for $13,840 from the settlement.
Related information:Student Lending