The adoption of the code of conduct by the eight companies will put pressure on the entire industry to reform, said Barmak Nassirian, a spokesman for the American Association of Collegiate Registrars and Admissions Officers.

He said the greater transparency will help students and families make smarter choices about loans.

In announcing the settlement, Cuomo called on other companies in the industry to adopt the new code of conduct. Students and families should be wary of companies that fail to do so, he said.

Last week, Cuomo's office said it was preparing to sue Goal Financial LLC, based in San Diego, for similar deceptive practices. Unlike the other lenders, Cuomo's office said Goal Financial indicated it was not willing to enter into a settlement.

The settlements build on Cuomo's ongoing investigations into the burgeoning student loan industry.

Last October, Cuomo's office subpoenaed 33 direct student loan companies. Tuesday's announcement marks what is likely the first wave of settlements in the industry, Cuomo's office said.

Last year, Cuomo helped bring about reforms in the industry when his office investigated deals that gave colleges "kickbacks" in exchange for being listed as a preferred lender.

At least 22 schools agreed to adopt codes of conduct for financial relationships with lenders as a result. Several of the lenders targeted in that investigation agreed to reforms and to pay a combined $12 million into a national fund to educate families and students about loans, according to Cuomo's office.