New York State Attorney General Andrew Cuomo has got the student loan industry running scared by pointing out an open secret: Student lenders pay various kickbacks to financial aid offices to drive business their way, rather than negotiate the best deals for students. With barely a few letters sent, six schools have agreed to repay students $3.27 million on private loans, while Citibank, one of the largest student lenders, is paying $2 million into a financial education fund.

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