Chairman Miller Statement on NYAG Cuomo's Settlement with NASFAA

Thursday, May 31, 2007

WASHINGTON, DC -- U.S. Rep. George Miller (D-CA), the chairman of the House Education and Labor Committee, made the following statement today on New York Attorney General Andrew Cuomo's announced settlement with the National Association of Student Financial Aid Administrators (NASFAA). Under the agreement, NASFAA will abide by a code of conduct and allow a representative from the New York Attorney General's office to attend any NASFAA meetings.

"During the course of our committee's investigation into the student loan industry, as well as investigations by other lawmakers and attorneys general, we have seen case after case of financial aid officers accepting extravagant kickbacks from lenders. Sadly, even after the months of revelations into these egregious practices, the Department of Education still is dragging its feet on taking any swift or effective action. I applaud Attorney General Cuomo for continuing to vigorously investigate and pursue settlements that will end these conflicts of interest between schools and lenders.

"Financial aid officers have a trusted responsibility to advise student borrowers on the best loan deals to help finance a college education. In addition to passing legislation, the Student Loan Sunshine Act, to clean up the relationships between schools and lenders, our committee will continue to thoroughly investigate the financial relationships between lenders and college financial aid officers."

As part of his investigation, earlier this month Miller uncovered documents that showed that JP Morgan Chase, one of the nation's largest student lenders, had paid at least $70,000 for a harbor cruise in New York City for over 200 financial aid officers attending a NASFAA conference in 2005. Miller has repeatedly urged U.S. Education Secretary Margaret Spellings to take emergency actions to reform the student loan industry.

For more information on Miller's investigation, click here.

For more information on the Student Loan Sunshine Act, click here.

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FOR IMMEDIATE RELEASE
Contact: Tom Kiley / Rachel Racusen
2181 Rayburn House Office Building
Washington, DC 20515
202-226-0853