Attorney General Andrew M. Cuomo of New York and Attorney General Richard Blumenthal of Connecticut announced today that they had settled with the College Board, resolving their investigation of the nonprofit organization’s lending activities.
The attorneys general found that the College Board had given discounts to colleges that agreed to list their loans on “preferred lender” lists.
The College Board had already ended its student-loan program, a move it said was the result of new restrictions on lenders and was independent of the investigation.
Under the settlement, the College Board will spend $675,000 on tools, including two new student-loan calculators to help students and financial-aid administrators find the least-expensive student loans. The College Board also agreed to adhere to the Mr. Cuomo’s direct-to-consumer marketing code of conduct if the organization resumes offering student loans.
The College Board said in a statement that it was pleased to have reached a settlement that was “forward-looking and focused on how the College Board can best serve students and families as they prepare to finance their college education.” —Beckie Supiano