Dept. of Education Launches Student-Loan Probe A federal Department of Education task force will examine the relationship between lenders and college financial aid officers. College officials are accused of accepting kickbacks from companies that want to be on a list of preferred lenders.
NPR logo

Dept. of Education Launches Student-Loan Probe

  • Download
  • <iframe src="https://www.npr.org/player/embed/9814464/9814465" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
  • Transcript
Dept. of Education Launches Student-Loan Probe

Dept. of Education Launches Student-Loan Probe

  • Download
  • <iframe src="https://www.npr.org/player/embed/9814464/9814465" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
  • Transcript

STEVE INSKEEP, host:

NPR's business news starts with an investigation of the student loan industry.

(Soundbite of music)

INSKEEP: The Education Department has created a task force to examine the relationship between lenders and college financial aid officers. College officials are accused of accepting kickbacks from companies that want to be on the list of preferred lenders.

The government says some financial aid officers received trips for steering students to specific loan companies. Now, the Education Department announced its investigation yesterday even as New York Attorney General Andrew Cuomo said it was too little, too late.

Cuomo has been leading an investigation of his own into the $85-billion student loan industry and he's been joined by other attorneys general across the country. He's set to testify today in Congress here in Washington.

Copyright © 2007 NPR. All rights reserved. Visit our website terms of use and permissions pages at www.npr.org for further information.

NPR transcripts are created on a rush deadline by Verb8tm, Inc., an NPR contractor, and produced using a proprietary transcription process developed with NPR. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.