ALBANY, N.Y. -- Three colleges agreed yesterday to change how they recommend lenders , and one of them will reimburse students $88,000 to settle a probe into the student loan industry.
Washington University in St. Louis, Oakbrook Terrace, Ill.-based DeVry University, and
Career Education Corp., a for-profit college based in Hoffman Estates, Ill., with campuses in Illinois and New York state, agreed to pay $21,000 into a government fund that helps educate parents and students about college loans, said New York Attorney General Andrew Cuomo.
Washington University ended a revenue sharing agreement with Education Finance Partners of California in 2006 that would have provided revenue for the university if it led more students to the company, said Missouri Attorney General Jay Nixon.
DeVry ended a similar agreement in 2005 and will pay $88,000 to students at its campuses nationwide who borrowed money during that time from Citibank.