Citibank, Colleges Settle Kickback Charges

Law360, New York (April 2, 2007, 12:00 AM EDT) -- A slew of universities in New York have agreed to pay students $3.3 million to settle a lawsuit brought by Attorney General Andrew M. Cuomo over alleged kickback arrangements with student lenders, including Citibank, Cuomo’s office said Monday.

The settlements require schools to reimburse students money that the colleges were paid by lenders for loan business and to adopt a new “College Code of Conduct,” Cuomo said.

“These schools and Citibank have made the responsible choice and are showing themselves to be industry leaders by being...
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