College Code of Conduct
New York Attorney General Andrew M. Cuomo’s office has signed
settlements with major universities.
The terms of the settlements require schools to adopt a new landmark
College Code of Conduct governing arrangements with student loan
lenders as well as reimburse students money that was paid to the schools
by lenders for loan business.
According to a press release from Cuomo’s office, settlements were
signed with the following schools:
New York University
Fordham University
Long Island University
St. Lawrence University
University of Pennsylvania
Syracuse University
The State University of New York’s 29 four-year campuses
The Attorney General’s College Code of Conduct forbids student loan
lenders from sharing revenue with schools. It includes disclosure standards
and restrictions on what are called a schools’ “preferred lender” lists.
It also Prohibits Gifts or trips given to school employees by lenders.
The Code of Conduct also bans lenders from providing staffing or
paying for the staffing of any component of a school’s financial aid office.
The Code of conducts additionally delimits other aspects of associations
between lenders and schools.
Cuomo said, “The College Code of Conduct spells out in black and white
that no lender may pay a school for placement on a preferred lender list and
No school may hide the reason it chose to recommend a particular lender.”
As the other condition of the settlement, the schools involved
will make the following reimbursements to students:
New York University: $1,394,563.75 for loans issued over a five-year period.
St. John’s University: $80,553 for loans issued over a one-year period.
Syracuse University: $164,084.74 for loans issued over a two-year period.
Fordham University: $13,840 for loans issued over a one-year period.
University of Pennsylvania: $1,617,580 for loans issued over a two-year period.
Long Island University: $2,435.41 for loans issued over a one-year period.
The money will be disbursed to individual students on a pro-rata basis,
contingent upon the amount each student borrowed in student loans and
the interest rate he or she was given.
Money designated for students who cannot be found will go toward
a fund to educate college-bound students about the student loan industry.
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College Code of Conduct, Fordham University, Long Island University, New York Attorney General, New York University, preferred lender, The State University of New York, University of Pennsylvania
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