As Memory of Loan Scandal Fades, a $13-Million Question Remains

What has become of the $13.1-million that student-loan companies and colleges have paid into the national education fund set up by New York’s attorney general, Andrew M. Cuomo?

That’s a question many colleges and lenders are asking.

In 2007 and 2008, 14 lending companies and three colleges agreed to pay millions into the fund to settle claims arising from Mr. Cuomo’s investigations into conflicts of interest in student lending and deceptive marketing. The national fund, the attorney general said, would be used to educate high-school students and their families about the financial-aid process.

Two years ago, Mr. Cuomo held a series of four events at New York high schools to brief students about the state’s “Student Bill of Rights” and provide them with tip sheets on borrowing. Since then, the attorney general’s Web site has been updated to provide students with information about borrowing and their rights.

But the office does not appear to have held any events outside of New York State, and it’s unclear how the millions are being spent. Mr. Cuomo’s office did not return repeated calls seeking comment. —Kelly Field