Cuomo reaches $350,000 settlement with student loan company

Drew Smith Nov. 6, 2008, 8:37pm


ALBANY, N.Y. (Legal Newsline) -- Alexandria, Va.-based Goal Financial has reached a $350,000 settlement agreement with New York Attorney General Andrew Cuomo.

Cuomo's investigation into the loan provider was part of a larger inquiry into the $85 billion student loan industry. He says colleges have been receiving payments from lenders seeking business from students.

"In these times of increasingly tight credit, it is crucial that students and their parents get solid, truthful information on which to base their loan decisions," Cuomo said.

"The agreements with lenders will ensure that students and their families will be protected from misleading and deceptive student loan marketing practices."

Goal Financial will pay $350,000 to Cuomo's fund for educating students about the financial aid process and has agreed to abide by a marketing code of conduct.

Eight other lenders have already agreed to the code and seven have contributed more than $1.4 million to the fund. The eight companies are Nelnet, Inc., Campus Door, Inc., GMAC Bank, NextStudent, Inc., Xanthus Financial Services, Inc., EduCap, Inc., Graduate Loan Associates, L.L.C. and MRU Holdings, Inc.

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