Editor’s Note: Peter Wood is executive director of the National Association of Scholars. A longer version of this essay was originally published May 14, 2007 on Minding the Campus
In mid-January, a brief item appeared on an inside page of The New York Times, headlined “Student Lender Investigated.” The article noted that the New York Attorney General’s office was looking into “student loan marketing” by Sallie Mae, “the nation’s largest lender to students.” Attorney General Cuomo had requested information about “preferred lender lists,” i.e. the lenders that colleges and universities recommend to their students. The article also noted that “some loan companies have criticized” such lists, alleging that lenders got onto the list “in exchange for payments or other benefits.”