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updated 02:00, Wed December 12, 2007

Cuomo Settles With Lender in Student Loan Probe

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ALBANY, N.Y. (AP) -- New York Attorney General Andrew Cuomo said Tuesday he has settled his investigation of a student loan consolidation company that paid fees to colleges and sports departments to help the lender market student loans directly to students.

Cuomo says Student Financial Services Inc. of Clearwater, Fla., which also operates as University Financial Services, had agreements with some of the nation's top universities that involved paying fees to the schools, their athletic departments and sports marketing firms for steering students to the lender.

The company had contracts with 63 colleges, 57 of which are NCAAA Division I schools.

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