This post concerns the ongoing investigation by the Attorney General of New York concerning the nefarious relationship between various members of the National Association of Student Financial Aid Administrators (a/k/a/ NASFAA), and the certain members of an alphabet-related group called the National Association for College Admission Counseling (a/k/a/ NACAC).
Both of these groups are registered non-profit organizations, yet are highly dependent upon the annual membership fees from colleges, universities, admissions' officers, financial-aid officers, and advertising revenue from deep-pocketed student-loan companies. It is the members of these groups that are the focus of pending student-loan fraud investigations.
Attorney General Andrew Cuomo appears to be investigating allegations of possible kickbacks to various school officials for steering students to certain lenders. His investigators say they have found numerous arrangements that benefited schools and lenders that were members of NACAC/NASFAA at the expense of students.
Besides schools, universities and private loan companies connected to NASFA/NACAC, even officials at the U.S. Department of Education have had their hand in the cookie jar. Matteo Fontana, a U.S. Department of Education official who oversaw the student loan industry, was put on leave after it was reported that she owned at least $100,000 worth of stock in Education Lending Group Inc. a company being investigated in the student-loan probe.