New York Attorney General Andrew M. Cuomo announced awards of approximately $13 million in grants will be funded by the settlements reached in a statewide student loan investigation.
The "Student Empowerment Grants" will go to the New York State Higher Education Services Corp. (HESC) and the New York State Public Interest Research Group (NYPIRG), for programs to help students and their families "make informed choices when funding their higher education."
Funds for the grants were obtained through Cuomo’s investigation of the student loan industry. The grants will be used to develop and implement a national, live-operator staffed call center and Web site as well as a public service announcement campaign.
The call center and Web site will offer "unbiased advice and information" for students and families concerning the lowest-cost education financing options and assistance for borrowers struggling to make their payments.
The nationwide public service announcement campaign will provide consumer education and build awareness of the resources available through the call center.
"Students, graduates, and their families will now have a trusted source for information about financing their higher education, as well as assistance if they are struggling to make their payments," said Attorney General Cuomo. "We ended corrupt conflicts of interest between lenders and universities, reformed the industry with new state and federal laws, and will now implement additional resources for students and families nationwide to help them make informed financial decisions."
HESC will develop and implement the free national “Student Loan Center” Web site and live-operator staffed call center. NYPIRG will develop and implement the national public service announcement campaign that will provide consumer education about financing higher education, minimizing student loan debt and choosing the best student loan options.
Attorney General Cuomo’s nationwide investigation of the student loan industry revealed kickback arrangements where lenders were paying universities to have the universities recommend the lenders to students, and deceptive and illegal tactics in the direct marketing of student loans.
The Attorney General’s investigation resulted in settlements with the largest student lenders in America and 28 schools.
