General Andrew Cuomo is kicking his ongoing investigation into student
loan providers up a notch, charging that top athletic departments
across the country may have received kickbacks in exchange for
promoting certain lenders.
“Students trust their University’s
athletic departments because so much of campus life at Division I schools
centers around supporting the home team,” said Cuomo. “To betray this trust by
promoting loans in exchange for money is a serious issue, especially when
Division I schools already generate tremendous revenue from their student
athletes. Today’s action is an important new step as we continue to examine the
unethical conflicts that pervade the student loan industry.”
Cuomo’s office has subpoenaed 39 athletic departments, with Rutgers
University being the only semi-local part of the investigation. The
investigation is specifically looking into whether these athletic departments evaluated one lender’s
interest rates before recommending their federal loans, or if their endorsement
of that lender was based purely on a payment scheme, or revenue sharing, which would violate federal law.