New York Attorney General Andrew Cuomo said on Thursday that companies specializing in student loans paid kickbacks to universities and their employees for steering business to them.
Lenders paid for trips for university officials, provided computer systems, and put school representatives on their boards to curry favor, Cuomo said at a press conference.
Investigations are continuing and lawsuits against lenders and schools remain an option, he said. His office has not yet announced any legal action.
Last month Cuomo, who succeeded Eliot Spitzer as attorney general on Jan. 1, said his office had expanded a probe of whether lenders use payments and perks to encourage colleges to steer student borrowers their way.
Spitzer began a preliminary inquiry in November, requesting information from student lenders Nelnet