Three student loan companies recommended to students by Penn State have been sent information requests in a widening investigation by New York Attorney General Andrew Cuomo, according to the Associated Press.

Cuomo is investigating whether loan companies have entered into revenue sharing and other financial arrangements with companies on their "preferred lender" lists. In some cases, college financial aid officials owned stock in the lending company or received consulting fees from the company, the Associated Press reported.

Furthermore, the Bush administration has begun to deny loan companies access to a federal database with sensitive college student information yesterday -- at least temporarily -- according to the Associated Press.

Six schools, including the University of Pennsylvania, have agreed to reimburse students a total of $3.27 million for inflated loan prices, according to the report.

The investigation requests sent Friday are the latest inquiries sent in the investigation, which has now grown to include 80 percent of the student loan industry, according to the Associated Press.

Anna Griswold, the executive director of Penn State's office of student aid, said Penn State did not participate in any of the arrangements under investigation.

"We play by the rules," she said. "We're within federal guidelines."

The office of student aid's Web site, www.psu.edu/studentaid, suggests that students "consider" private loans from three companies: Edamerica, Citizens Financial Group, Inc. and Wachovia.

Edamerica's president, Tony Hollin, said the company did not participate in programs such as revenue sharing or opportunity pools.

"Quite frankly, we don't do business that way," he said.

Griswold said Penn State selected the companies solely because they had low rates, good customer service and smooth processing of applications. She said many students ask the office to recommend a company.

"There is no money coming in from those lenders -- from any lender," she said. "We receive no incentive, no money, no offset to our operating expenses."

In response to the investigation of other colleges, Griswold said the office's Web site would be changed to make it clear that students are free to take a loan from any company, not just the three listed.

One loan company, Student Loan Xpress, has been at the center of the investigation. Three of the company's top executives have been placed on paid leave while stock transactions with a Department of Education official and college financial aid officers are investigated, the Associated Press reported.

Student Loan Xpress has never approached Penn State about entering into an arrangement, but students are allowed to take a loan from the company, Griswold said.

Griswold also said she did not think there were very many lenders engaging in financial arrangements with student loan offices. "I do not think it is as rampant as the attorney general is suggesting," she said.