Cuomo may sue Drexel in loan case

ALBANY, N.Y. -- New York Attorney General Andrew Cuomo intends to sue Drexel University in his investigation of student loan arrangements that resulted in more settlements yesterday with colleges in Rhode Island and New York.

The Drexel action would be his first lawsuit against a college or university in the investigation, although he has settled with Fordham University, St. John's University, and Long Island University in negotiations that avoided court action.

Cuomo said yesterday that Drexel received more than $124,000 from the lender Education Finance Partners and was in line to receive $126,000 more after the Philadelphia college made EFP its "sole preferred private loan provider." Since 2005, EFP has gotten more than $16 million in loan volume from Drexel, Cuomo said.

Cuomo disclosed settlements with Salve Regina University in Rhode Island, Pace University, the New York Institute of Technology, and Molloy College on Long Island. The attorney general said Salve Regina and Molloy both had revenue-sharing agreements with EFP, a lender that settled with Cuomo recently.

Molloy College, however, denied that it settled any case against it and said it didn't take money from EFP or place the lender on its preferred list.