New York Attorney General Andrew Cuomo's office expanded a sweeping investigation into the student loan industry with subpoenas and information requests to 13 more lenders, including some of the largest U.S. banks.
Cuomo's office and New York state's two top lawmakers also unveiled legislation to regulate student loan practices. The Student Lending, Accountability, Transparency and Enforcement Act, or SLATE, would require all New York colleges to adopt Cuomo's code of conduct for student loans or face fines.
With the new inquiries, sent Friday, Cuomo's investigation has expanded to include the top 20 student lenders commanding more than 80% of the $85-billion-a-year U.S. student lending business.
The latest requests were sent to 10 of the country's largest banks: Bank of America; Citizens Financial Group, a unit of Royal Bank of Scotland; JPMorgan Chase; National City; PNCFinancial Services Group; Regions Financial; SunTrust Banks; US Bancorp; Wachovia and Wells Fargo. Cuomo's office also sent inquiries to three closely-held student lenders: Access Group, College Loan Corp. and EdFinancial Services.