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College loan scandal "like peeling back an onion"

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Besides the actual scandal, where top American universities have been cashing in on the backs of students, what really stands out here is that this investigation is happening at the state level and not the federal level. Now why is it that the feds have no interest in pursuing such a scandal?

Cuomo would not divulge where the burgeoning investigation is headed next, including whether more subpoenas are on the way. But he said the investigation could lead to criminal charges against high-ranking officials at both lending companies and universities.

''This is like peeling an onion,'' Cuomo said. ''It seems to be getting worse the more we uncover. It's more widespread than we originally thought ... More schools and more lenders at the top end.

''We have demonstrated this is not just the exception,'' he said. ''This is the rule.''

Cuomo is investigating alleged kickbacks to school officials who steered students to certain lenders. His investigators say they have found numerous arrangements that benefited schools, financial aid officers and lenders at the expense of students.

Investigators found that many colleges have established ''preferred lender'' lists and entered into revenue sharing and other financial arrangements with those lenders. Some colleges have ''exclusive'' preferred lender agreements with the companies.

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