Education Law
NY Subpoenas Study-Abroad Agencies
Posted Aug 16, 2007, 08:38 am CST
By Debra Cassens Weiss
The New York Attorney General’s office is investigating whether study-abroad agencies pay cash or other incentives to universities.
Lawyer Benjamin Lawsky told the New York Times that the office has issued five subpoenas to study-abroad providers, the first of several to come. The probe follows disclosures that some study-abroad agencies offer rebates and marketing stipends to colleges.
Critics claim universities that take such perks limit study-abroad options, increasing the cost to students. Such incentives may not be limited to the study-abroad and student-loan industries.
“As our investigation continues to expand,” Lawsky said, “we are finding that more and more vendors who do business on campus are there because of the cozy relationships they have developed with the schools."
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