JPMorgan to stop payments to alum associations

JPMorgan Chase & Co. has agreed to stop making payments to more than 100 college alumni associations that allowed the company to market its consolidation loans directly to graduates, according to the Wall Street Journal.
MAY 08, 2007
By  Bloomberg
JPMorgan Chase & Co. has agreed to stop making payments to more than 100 college alumni associations that allowed the company to market its consolidation loans directly to graduates, according to the Wall Street Journal. The New York-based financial services company is the second to acknowledge such agreements as a result of an expanding investigation of student loan abuses by New York Attorney General Andrew M. Cuomo. J.P. Morgan said that it sought access to alumni lists so it could get graduates to combine multiple loans outstanding into a single "consolidation" loan through its Collegiate Funding Service unit, according to the report. Mr. Cuomo said that the deals were not properly disclosed to students. Last week, Lincoln, Neb.-based Nelnet Inc., said it had similar programs with 120 alumni associations, adding that it believes that the agreements are appropriate, but remains under investigation by New York State, according to the report. As part of his nationwide investigation, Mr. Cuomo has revealed payments by loan companies to colleges, aid officers and alumni associations that he believes have compromised financial advice to students and their families. Thus far, 22 schools have agreed to a new "code of conduct" that prohibits gifts and other payments from lenders to schools.

Latest News

SEC Says Game Service Roblox Part of ‘Active Investigation’
SEC Says Game Service Roblox Part of ‘Active Investigation’

Short sellers previously said the company was under investigation, though Roblox denied allegations.

Musk’s DOGE descends on CFPB with intention to shut it down
Musk’s DOGE descends on CFPB with intention to shut it down

The Consumer Financial Protection Bureau is in the crosshairs of the Republican group that is widely attempting to dismantle government agencies.

Advisor fighting Finra banishment loses $17.7 million dispute with old firm
Advisor fighting Finra banishment loses $17.7 million dispute with old firm

National Securities Corp. sued the advisor in 2020, alleging breach of contract and unjust enrichment.

Job numbers, inflation leaving room for Fed to hold rates
Job numbers, inflation leaving room for Fed to hold rates

Recent data support a measured pace by the Federal Reserve for the year ahead.

Private assets remain hot despite surging stock market
Private assets remain hot despite surging stock market

Financial advisors are still adding alternatives despite the surge in publicly traded stock prices

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.

SPONSORED Why wealth advisors should care about the future of federal tax policy

Blue Vault features expert strategies to harness for maximum client advantage.