October 17, 2003

Student-Loan Companies Under Scrutiny for Incentives to Colleges

By STEPHEN BURD

LIST: Good Business or Illegal Inducements?

Has Sallie Mae, the largest financer of federal student loans, illegally offered inducements to colleges to steer prospective borrowers its way? Some of the loan company's competitors think so.

As evidence, they point to documents outlining a proposal that Sallie Mae made to Pace University last year, in which the loan company offered $4-million in private loans to needy students

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