Did your university recommend a "preferred" lender when you applied for a student loan? A widening probe into the $85 billion student loan industry has found that many lenders give financial benefits to universities recommending the financial institution to students as a "preferred lender." Ninety percent of students choose a lender recommended by their school, not realizing that they may be paying more than they should -- to finance the lender's payments to their school.

Six universities and three financial institutions have already reached settlements providing over $10 million. However, that is thought to be the tip of the iceberg. "This is like peeling an onion," said New York Attorney General Andrew Cuomo, whose office launched the inquiry. "It seems to be getting worse the more we uncover. It's more widespread than we originally thought."

It is suspected that many universities and colleges have undisclosed relationships with lenders, that benefit the schools at the expense of their students. These range from outright kickbacks to the school based on the volume of student loans to free travel and other benefits given to school officers. These practice may involve hundreds of American colleges and universities, and many different types of student loans. Many thousands of students and parents may potentially be entitled to reimbursement of inflated loan fees.

Our firm is investigating these questionable student loan practices, and the rights of student borrowers. If you borrowed from a "preferred lender," or if you have information bearing on these practices, or if you would just like to know more, please email: