• Friday, November 27, 2009
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College-Lender Scandal Has One Big Winner: MyRichUncle

While many lenders have been stung by the New York attorney general Andrew M. Cuomo’s continuing investigation into conflicts of interest in the student-loan industry, at least one company appears to have profited from the scandal.

MyRichUncle, the controversial student-loan company that many credit with sparking Mr. Cuomo’s bruising inquiry, says its loan originations were up almost 300 percent in the 2007 fiscal year, from $38.9-million to $154.4-million.

The lender first drew attention to conflicts of interest in student lending a year ago, when it ran a two-page advertisement in The New York Times accusing financial-aid officers of accepting “kickbacks” and “payola” from lenders. A couple of months later, the attorney general’s office opened its investigation into the industry.

Recently, MyRichUncle has sought to capitalize on the the controversy. On Sunday the lender ran an advertisement in The Washington Post that consisted of a collage of negative newspaper headlines about the college-lender scandal and, in the center, MyRichUncle’s trademark hat and the words “Conflict Free.” —Kelly Field