A recent investigation led by New York Attorney General Andrew Cuomo found that a “significant number of lenders” determine eligibility for private loans based in large part on the colleges students attend rather than individuals’ credit worthiness.

Prior to this finding, New York passed the Student Lending Accountability, Transparency and Enforcement (SLATE) Act of 2007 to protect college-bound students from aggressive loan industry practices. Cuomo also drafted a code of conduct for student loan schools and organizations to abide by.

ASUW student lobbyist Bryce McKibben said the Washington state legislature has not followed New York by drafting legislation on student loans, as a result of a lack of evidence and timeliness since discussion came up toward the end of the legislative session. He added that he did not know about different rates being offered to students based on the colleges they attend.

The Sunshine Act, a bill that seeks to fulfill purposes similar to those of the New York bill, was sponsored by senators Edward M. Kennedy (D-Mass.) and Richard J. Durbin (D-Ill.). On June 19, attorneys general from 31 states, including Washington, sent a letter to U.S. Senators requesting that they pass the Student Loan Sunshine Act.

Kay Lewis, director of UW Student Financial Aid, said her office was aware that rates on private loans are set based on a variety of factors.

“Our office had heard some schools got better deals, but we hadn’t confirmed that,” she said.

The practice of offering different rates based on which school a student attends does not break any laws.

In a recent publication, Cuomo said lenders divide colleges into groups based on how their alumni repay federally subsidized loans. Depending on the default rate at their school, students are eligible for different private loan rates. Within those ranges, the focus is on a student’s credit record.

Some schools have “preferred lenders,” and investigations have discovered that some lenders pay to get on those lists.

“UW does not have a preferred lender list,” Lewis said. “We always advise our students to research all their options and ask pointed questions about rates, terms and conditions.”

McKibben said he contacted the Attorney General’s office about pursuing an investigation in Washington, but they have not gotten back to him yet.

Kristin Alexander, media relations manager for Washington Attorney General Rob McKenna said, “The Attorney General’s office hasn’t had any current … or past investigations into student loans in Washington. But if we were, I wouldn’t be able to comment on them.”

As of this week, according to a press release from Cuomo’s office, “the top six largest student loans providers in the country [have] agreed to … a Code of Conduct [that] protect[s] students.” Twenty-six schools have also agreed to the code.