A student-loan company that had agreed to a $2.5-million settlement with New York’s attorney general, Andrew M. Cuomo, in 2007 has filed for bankruptcy protection. According to the Austin American-Statesman, the company, Education Finance Partners, said in papers filed this week that it had assets of less than $1-million and liabilities of $10-million to $50-million.
The San Francisco-based company agreed to the settlement with Mr. Cuomo last year after his office threatened to sue, accusing it of paying colleges to steer students to its private loans. Private loans typically cost more than those offered through the federal student-loan programs. The company dropped out of the student-loan market last August, according to a statement on its Web site. —Charles Huckabee
