It also agreed as a part of the settlement to adhere to a "Code of Conduct" promulgated by Cuomo's office and agreed to by a number of lenders and universities that previously reached settlements in the course of the ongoing investigation.
"Today's agreement resolves an investigation by the Attorneys General that found that the College Board, which developed and marketed numerous products and services related to student financial assistance, gave significant discounts on those products and services to certain colleges which agreed to place the College Board's loans on their 'preferred lender' list. This effectively directed students towards loans that might not be the best or least expensive option for them," Cuomo said in a statement.
The specific terms of the agreement call for the College Board to invest $675,000 to "develop and provide a set of tools to help financial aid administrators, students, and parents across the country compare student loan offers and identify the lowest-cost student loan options."
The College Board agreed to provide these tools free of charge for two upcoming financial aid cycles. The settlement did not specify any future fees the College Board might charge in connection with the tools.
Ryan Williams, Vice President for Enrollment Programs & Services at the College Board, said in a statement: "We are pleased that we have reached a settlement of the inquiry by the Attorneys General of New York and Connecticut that is forward-looking and focused on how the College Board can best serve students and families as they prepare to finance their college education."
The College Board for reasons unrelated to the probe is no longer a lender, although it continues to provide financial aid advisement services to students.