Sallie Mae Settles Student Loan Kickback Charges

Law360, New York (April 11, 2007, 12:00 AM EDT) -- Sallie Mae, the country’s largest student lender, will pay $2 million to settle allegations of inappropriate anti-competitive relationships with colleges brought by New York State Attorney General Andrew Cuomo.

The settlement, which Cuomo announced Wednesday, is part of the attorney general’s ongoing investigation into the $85 billion student loan industry. The $2 million will go into a fund to educate students and parents about the loan industry.

As part of the agreement, Sallie Mae, or SLM Corp., also agreed to adopt Cuomo’s Student Loan Code of...
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