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Missouri colleges agree to student loan code of conduct

By AP/KWMU

Jefferson City, Mo. – Eleven colleges in Missouri, both public and private, have agreed to a code of conduct regarding student loans.

That's the word from Attorney General Jay Nixon. He reached a similar agreement in April with Washington University in St. Louis. Nixon says more schools could follow. The University of Missouri system has not signed on yet.

The agreements follow a national investigation led by New York's attorney general into loan arrangements that he says favored banks and schools over students.

The idea is to protect students from kickbacks paid to colleges by lenders in exchange for steering students their way.

Schools are to end revenue sharing agreements with lenders, bar employees from being paid by lenders and disclose ties to loan companies.

The schools that adopted the code are Avila University, Drury University, Hannibal-LaGrange College, Mineral Area College, Missouri Valley College, Northwest Missouri State University, Park University, Southwest Baptist University, State Fair Community College, Three Rivers Community College and University of Central Missouri.

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