New York Attorney General Andrew Cuomo said he has reached settlements with seven student lenders over the methods they allegedly used to market loans directly to consumers.
Mr. Cuomo's office, which began investigating the student loan industry last year, said the seven lenders agreed to abide by "strict new standards" regarding their marketing. They will pay $1.4 million into a fund designed to educate students and their families about the loan process.
The seven lenders are Nelnet Inc., Campus Door Inc., GMAC Bank, NextStudent Inc., Xanthus Financial Services Inc., EduCap Inc., and Graduate Loan Associates LLC. MRU Holdings Inc., which does business as My Rich Uncle, also is adopting the code but will not pay into the fund, Mr. Cuomo's office said.