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New Federal Regulations Take Aim at Student-Loan Conflicts of Interest

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The U.S. Department of Education last week released a set of new regulations aimed at helping to crack down on potential conflicts of interest between colleges and student-aid lenders identified in an investigation by Andrew M. Cuomo, the New York state attorney general. ("Student-Loan Controversy Is Drawing Wide Concern," May 2, 2007.)

The new regulations, published Nov. 1, require colleges to have at least three lenders on their so-called “preferred-lender lists,” which are distributed to students. The regulations, which take effect next July, would also bar gifts of anything more than nominal value from lenders to college financial-aid offices.

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For background, previous stories, and Web links read College Access.

Vol. 27, Issue 11, Page 4

Published in Print: November 7, 2007, as New Federal Regulations Take Aim at Student-Loan Conflicts of Interest

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