Albany, N.Y. – New York Attorney General Andrew Cuomo has broadened his student loan investigation to alumni associations nationwide that steer students to loan consolidation companies.
Cuomo issued 90 subpoenas and letters to alumni groups, including those representing graduates from The Juilliard School in New York, the University of Illinois, the University of California at Riverside and San Jose State University.
All the groups had agreements or relationships with lender Nelnet, based in Lincoln, Neb., Cuomo said.
He is asking whether the alumni groups that endorsed loan consolidation companies received any benefit or payments from lenders.
Loan consolidation allows borrowers to repackage debt – often held by several banks or lenders and covering undergraduate and graduate studies at different schools – into a single loan.
