Connecticut and New York officials said today the national association that writes and administers the SAT has resolved a two-state investigation into deceptive marketing of student loans.
Attorneys General Richard Blumenthal of Connecticut and Andrew Cuomo of New York said the College Board gave inappropriate discounts to colleges that promoted its services, effectively directing students to loans that were not their best or least expensive options.
Last year, Blumenthal said his office reached agreements with three Connecticut schools — Fairfield University, Trinity College and Sacred Heart University — after his investigation revealed potential conflicts of interest between the schools’ financial aid offices and the College Board.
The officials said the company gave the discounts on financial aid products and services to colleges that placed them on their preferred lender lists.
In the settlement announced today, the not-for-profit settled with Connecticut and New York and will invest $675,000 to help students find the lowest-cost loan options.
A spokesman says the College Board is pleased with the settlement.
Blumenthal also announced that the Connecticut Community Colleges has adopted a Financial Aid Code of Conduct on behalf of its 12 community college member schools — to prevent conflicts of interest — joining all of Connecticut’s four-year state and private colleges.
(AP)
