Colleges and universities, rocked by charges of receiving kickbacks from student lenders, may now face even tougher scrutiny. New revelations show that schools have accepted perks from companies that sent students on study-abroad programs. And investigators say they're pushing their probe further, to see whether schools are getting special compensation for other services, as well.
New York Attorney General Andrew Cuomo has forced student lenders and universities to cough up millions to settle charges that schools got perks in exchange for a bigger share of the student loan business. Cuomo special assistant Ben Lawsky says that probe has been expanded — to the business of sending students on study-abroad programs.
This week, Cuomo subpoenaed five companies to find out whether they're offering any kinds of favors to schools in exchange for student clients. Many study-abroad officers get all-expense paid trips to the countries that students are visiting.