WASHINGTON (AP) -- The Bush administration has proposed new rules aimed at clamping down on conflicts of interest in the student loan industry.
Education Secretary Margaret Spellings had previously said she would issue the rules about this time and the department publicized the proposed rules Friday.
The action comes amid high-profile investigations into the student loan industry by New York Attorney General Andrew Cuomo and lawmakers in Congress. They have accused the Education Department of failing to police improper relationships between student lenders and colleges or their employees.
Cuomo's investigation unveiled arrangements between universities and lenders in which schools received some of the money lenders made from loans at those schools. And in some cases, the investigators found schools or loan officials were given incentives to place loan companies on a school's preferred-lender list.
This from CNN.
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