Nelnet Settles With Cuomo Over Kickbacks

Law360 (July 31, 2007, 12:00 AM EDT) -- The nation's second largest loan consolidator agreed Tuesday to pay $2 million to end New York Attorney General Andrew Cuomo's investigation of it as part of his larger probe of the $85 billion student loan industry.

Under the agreement, Nebraska-based Nelnet Inc. will pay $2 million into Cuomo’s national fund aimed at educating high school students and their parents about student loans, according to both Nelnet and Cuomo's office.

“By paying for exclusive referrals of their loans, Nelnet violated the trust that students and recent graduates...
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