The Cuomo-nator

We understand that Andrew Cuomo has big shoes to fill and is looking to make an impact on day one. But this is really stretching it. So Andy launches this extensive investigation into the preferred lender list shennanigans. Starts collecting details on hundeds of lenders and schools and the relationships between the two groups.

And he comes up with the bullet-proof logic that schools have lenders on their "preferred lender lists" and the schools get "kickbacks" in return for placing lenders on the lists. This article sort of describes what happened and the resulting settlements.

We sort of at odds here. The notion of "preferred lender list" is undoubtedly the issue. If schools actually competed the slots each year it would be one thing, but they don't. So, they should do away with the "preferred lender list". And replaced is a list of all eligible FFELP and private ed lenders. So when the wet-behind-the-ears freshman shows up and asks the all-knowing financial aid officer how he/she goes about securing the loans, the financial aid officer merely tosses the entire list across the table and says, "Pick one....do a little comparing....but pick one." But there's no reason for the revenue sharing deal to be done away with. Those "kickbacks" went right to the school's scholarship funds, the school's general fund, etc. There's nothing wrong with that. It's just how things work.

We can't believe that all these schools and lenders are merely accepting the "settlements" offered by the Cuomo-nator. Won't someone stand up and give this bully a tune up?