NEW YORK - The New York state attorney general says eight student loan companies have agreed to pay $1.4 million and adopt broad reforms as part of a settlement over deceptive marketing practices.

The attorney general's office said Tuesday that the companies marketed products to appear to be federal loans, pushed higher-interest private loans and used bait-and-switch strategies.

The attorney general's office says the companies settling are Nelnet Inc., Campus Door Inc., GMAC Bank, NextStudent Inc., XanthusFinancial Services Inc., EduCap Inc., Graduate Loan Associates LLC and MRU Holdings Inc.

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On the Net:

http://www.oag.state.ny.us

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