Massachusetts Launches Student Loan Probe

Law360, New York (May 9, 2007, 12:00 AM EDT) -- The U.S. student loan industry faces more scrutiny over allegations of cozy, anti-competitive relationships between universities and lenders—this time in Massachusetts.

Following on the heels of inquiries by state attorneys in New York, Ohio and Missouri, Massachusetts attorney general Martha Coakley confirmed Wednesday she had launched an investigation into claims of deceptive practices in the $8.5 billion industry.

Coakley’s office is investigating allegations student loan lenders paid Massachusetts colleges for preferential treatment, gave kickbacks to university financial aid employees for referring students, and shared revenue with...
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