PLATTSBURGH -- A student loan was once considered a junior mortgage.

Today, the price can be far greater.

"There are decisions you are making now that will be alive for the rest of your life," said John Maggiore, a policy adviser for New York State Attorney General Andrew Cuomo's office. "One decision is what school you will go to and how you will pay for it."

Maggiore offered advice to Plattsburgh High School students, cautioning them against misleading private loans and encouraging them to ask questions when figuring out how to pay for higher education.

PREFERRED LENDERS

Maggiore started by asking how many students planned to apply to college, following by pointing out that higher-priced private colleges can cost as much as $50,000 a year.

"Roughly 90 percent of students who took out loans took them from their college's preferred-lenders list," he said.

The problem is that an investigation by Cuomo's office revealed that some colleges weren't placing lenders on the list principally because the loans were in the best interest of students. Colleges often failed to examine which lenders were offering loans with students' best interests in mind.

"Students were being told this is the preferred lenders," Maggiore said. "But not for students -- it was a preferred lender for the school because they get a kickback."

New York state officials met with representatives of colleges that appeared to have a conflict of interest with lenders and hammered out a code of conduct that has since become law. It prohibits practices such as lenders giving colleges anything of value.

"We are trying to get it passed nationally," Maggiore said.

USE CAUTION

Maggiore stressed that Cuomo's office was not trying to convey financial aid is a bad resource.

"The overwhelming number of people who work in the financial-aid office are good people, and you should go to them, but just go to them armed with questions."

The state investigation is now targeting direct-marketing companies hired by lenders to go after students.