August 3, 2007
The University of Texas at Arlington's alumni association was paid more than $62,000
to pitch a company that helps graduates consolidate their student loans, company records
The Dallas Morning News obtained copies of contracts and other documents from the
office of New York Attorney General Andrew Cuomo, which has been investigating practices
at Nelnet and other student loan companies. Under a settlement with Mr. Cuomo's office
announced Tuesday, Nelnet will pay $2 million toward a national fund to advise students
on loan options. No alumni groups were fined or sanctioned.
Mr. Cuomo's office had collected documents relating to Nelnet's dealings with alumni groups tied to UTA, the University of Texas at San Antonio, the University of Texas at Tyler and Texas Tech University. Some alumni groups elsewhere received subpoenas.