What's up with University Preferred Lender Lists?

Well, Andrew Cuomo will be getting to the bottom of it all here very shortly. Looks like the NY AG is suspicious about the tatics that go on which land a lender on a university's list. Not to be out done by Cuomo's press, Sen Edward Kennedy is launching some legislation to monitor the situation as well. If that weren't enough, the Dept of Education is now starting to pay attention to the matter.

What it comes down to is Financial Aid offices would prefer to do business with a small group of lenders, so they steer business as often as possible to that small group they feel compfortable with. It's just makes things easier for the financial aid office. However, as a student, you should be able to bring any lender you want to the table. If a financial aid officer gives you a hard time, be vocal and stand your ground.