Attorney General Andrew Cuomo warned schools to immediately disclose their conflicts of interest in choosing preferred lenders:
“There is an unholy alliance between banks and institutions of higher education that may often not be in the students’ best interest. The financial arrangements between lenders and these schools are filled with the potential for conflicts of interest. In some cases they may break the law.”
Among the offenses catalogued are
Kickbacks, free trips to Pebble Beach, lines of credit, outright payments , and call centers so that when you call up the school's financial aid office, you actually get the lender.
Similar to stuff that's been unfolding recently in Pennsylvania.