College Loan resolves probe for $500G Jul 22, 2007
The others are Goal Financial and Education Lending Group, which operates as Student Loan Xpress. Together, the three lenders held nearly $18 billion in student loans in 2005, Kantrowitz said. (San Diego Union-Tribune)
3 S.D. student loan execs have left in wake of probe Jun 5, 2007
One of the earliest disclosures was that San Diego's Education Lending Group, which operated Student Loan Xpress before CIT Group acquired the business in 2005, had awarded stock grants to college administrators and at least one official with the federal Department of Education ... 13 million into a national education fund, 10 days after firing David Charlow, a financial aid director who held stock in Education Lending Group. (San Diego Union-Tribune -- Business)
Cuomo's watching Columbia Jun 1, 2007
Investigators discovered that David Charlow, financial aid director for Columbia's undergraduate college and its engineering school, allegedly owned $100,000 or more of stock in Education Lending Group, parent of Student Loan Xpress. And Charlow allegedly put SLX on a list of preferred lenders he actively encouraged students to use. (Newsday -- State)
Columbia Univ. fires financial aid director in loan conflict May 23, 2007
Columbia placed Charlow on leave in April after regulatory filings showed he sold shares in Education Lending Group , former parent of Student Loan Xpress, for a gain of more than $100,000. Student Loan Xpress is now a unit of CIT Group. (USA Today -- Money)
U. of Texas Fires Officer Over Tie to Loan Company May 16, 2007
The report called the compilation of such lists ;flawed; and done at the sole discretion of Dr. Burt, who was placed on leave after it was disclosed he held stock in Education Lending Group while making decisions about Student Loan Xpress, one of its affiliates ... The report also provided a full account of Dr. Burt;s financial dealings with Education Lending Group and Student Loan Xpress, first publicized by New York;s attorney general, Andrew M. Cuomo ... According to the report, in January... (Foster's Daily Democrat)
Barry Burgdorf May 16, 2007
UT fires financial aid director - Austin Business Journal. Members: Not Registered. (Austin Business Journal, TX)
University fires financial aid director May 16, 2007
Lawrence Burt, university director of financial services, had been put on leave earlier following allegations that he owned shares in Education Lending Group (ELG), former parent of Student Loan Xpress, now a CIT Group Inc. unit. A 134-page report on the university's internal inquiry faulted Burt's management of his office in several areas. (CNN -- Education)
Democrat demands White House student loan records May 2, 2007
Last month a manager in the Education Department's financial aid office was put on leave pending a review of his ownership of stock in Education Lending Group, former parent of Student Loan Xpress, now a unit of CIT Group Inc.. Along with Kennedy and Miller, New York Attorney General Andrew Cuomo has been campaigning to clean up the student loan business. (CNN)
2nd S.D. student-loan firm cooperating in investigation May 1, 2007
Last month, investigators disclosed that San Diego's Education Lending Group provided shares of its stock to top financial aid officers at three prominent universities. The probe has uncovered other questionable payments that some lenders have made to win a place on a college's or university's preferred lender list. (San Diego Union-Tribune -- Business)
Congressional probe of student loans widens Apr 27, 2007
Earlier this month, a manager in the department's financial aid office was put on leave pending a review of his ownership of stock in Education Lending Group Inc., former parent of Student Loan Xpress, now a unit of CIT Group Inc.. Along with Kennedy and Miller, New York Attorney General Andrew Cuomo has been leading a campaign to shake up the student loan business. (CNN)
Education Department begins student loan task force Apr 25, 2007
A senior department student aid official, Matteo Fontana, has been placed on leave pending an investigation into his holding of at least $100,000 in stock in Education Lending Group, the former parent company of Student Loan Xpress a company Cuomo is investigating. The Wall Street Journal reported Tuesday that a second student aid official in the department, Michael Sutphin, reported holding more than $50,000 in stock in student-loan giant Sallie Mae. (San Diego Union-Tribune -- Business)
Student aid officer quits rulemaker panel Apr 17, 2007
According to a September 2003 U.S. regulatory document, Fontana held 10,500 shares of Education Lending Group Inc., then parent company of Student Loan Xpress. Copyright 2007. (CNN)
Loan Justice? Apr 17, 2007
An investigation by New York State Attorney General Andrew Cuomo revealed that officials at Columbia University, the University of Texas and the University of Southern California owned stock in a company called Education Lending Group, which owned a company called Student Loan Xpress. All three universities listed Student Loan Xpress as a preferred lender. (Forbes)
'A gold mine' for creditors Apr 16, 2007
Locally based Student Loan Corp., Goal Financial and Education Lending Group, which operates as Student Loan Xpress, held nearly $18 billion in student loans in 2005, according to Finaid. org, an informational Web site for borrowers. (San Diego Union-Tribune)
Widener launches probe in to financial aid Apr 13, 2007
Student Loan Xpress was a subsidiary of Education Lending Group Inc. before the parent company was purchased by CIT in 2005. Cuomo is investigating allegations of kickbacks given to several school officials nationwide for steering students to certain preferred student-loan companies. (The Delaware County Times, PA)
College Officials Seen Compromised as Board Members of Student Loan Firms Apr 13, 2007
CIT entered the student loan industry when it acquired Education Lending Group Inc. in 2005, after Ryan joined the board ... The attorney general has been investigating financial aid officials at universities including Columbia, Johns Hopkins, Southern California and Texas who may have owned shares of, or accepted payments from, CIT's Education Lending Group ... The U.S. Education Department put Matteo Fontana, a student-aid official, on leave last week after he was shown to have owned Education... (Bloomberg -- US)
Education Dept. Oversight Questioned Apr 13, 2007
The forms, released by the department late Thursday, show the official, Matteo Fontana, listed ownership in 2002 of stock in two companies that manage student loans: Direct III Marketing Inc. and Education Lending Group. In fact, the companies are the same; Direct III Marketing changed its name to Education Lending Group at about that time ... But a separate disclosure the company filed with the Securities and Exchange Commission nine months later lists him as offering 10,500 shares of Education... (Sunspot.net -- Business)
Senate Inquiry in Loan Case Is Studying Stock Transfer Apr 12, 2007
Senate aides said that for each $10,000 in the private placement, investors had received 10,000 shares and 5,000 warrants, or options to purchase additional stock before a certain date, in Education Lending Group, which was then the parent of Student Loan Xpress. Mr. Balestri obtained $80,000 worth of stock and kept none of it, according to the documents. (Foster's Daily Democrat)
Sallie Mae pays $2M in student-loan scandal settlement Apr 12, 2007
The company was acquired by CIT Group in 2005 when it bought Education Lending Group Inc.. On Monday, CIT suspended the top three executives at Student Loan Xpress amid its own investigation into the unit's business practices. (USA Today -- Money)
$2M Settlement For Sallie Mae In Probe Apr 12, 2007
The company was acquired by CIT Group Inc. in 2005 when it bought Education Lending Group Inc.. Last week, Cuomo sent subpoenas to Reston, Va. (WFOR.com, FL)
Student Lender Had Early Plans to Woo Officials Apr 11, 2007
By 2002, they were all working together in a new company, Education Lending Group, which had Student Loan Xpress as a student loan marketing subsidiary ... Lawrence Burt, director of the financial aid office at the University of Texas at Austin, said that Mr. Balestri encouraged him to buy shares in Education Lending Group and that he bought 1,500 shares for $1,000 in late 2001 ... The shares of Education Lending Group were worth roughly $10 each. (Foster's Daily Democrat)
Colleges, Lending Companies Agreed to Share Revenue Apr 11, 2007
" On Monday, a loan company that has been at the center of the investigation, CIT Group Inc., placed three top executives at its Student Loan Xpress division on paid leave following allegations of stock transactions with a high-level U.S. Department of Education official and college financial aid officers. The Department of Education official who oversaw parts of the student loan industry was also placed on leave after it was reported that in 2003 he owned at least $100,000 worth of stock in... (Fox News)
Attorney General: Student loan scandal widespread Apr 11, 2007
"Cuomo is investigating alleged kickbacks to school officials who steered students to certain lenders. His investigators say that they have found numerous arrangements that benefited schools, financial aid officers and lenders at the expense of students.Investigators found that many colleges have established "preferred lender" lists and entered into revenue-sharing and other financial arrangements with those lenders. Some colleges have "exclusive" preferred lender agreements with the... (North County Times)
Cuomo says new settlement with student lender Apr 11, 2007
" So far, six schools _ the University of Pennsylvania, New York University, Syracuse University, Fordham University, Long Island University and St. John's University _ have agreed to reimburse students a total of $3.27 million for inflated loan prices caused by revenue sharing agreements, Cuomo said. The schools will return money to students who took out loans during the time the revenue sharing agreement was in effect. Students will be refunded based on the amount they were loaned. On Monday,... (Newsday -- Long Island)
Widener is 2nd Pa. school caught up in loan probe Apr 11, 2007
On Friday, Matteo Fontana, a Department of Education official who oversaw the student loan industry, was put on leave after it was reported that in 2003 he owned at least $100,000 worth of stock in Education Lending Group Inc., the former parent of Student Loan Xpress ... All three executives put on leave Monday held positions with Education Lending Group before CIT's acquisition of the company, according to Securities and Exchange Commission records ... Last week, Cuomo's office found that... (NEPA News, PA)
Cuomo: College aid kickbacks widespread Apr 11, 2007
THE ASSOCIATED PRESS. April 11, 2007 ALBANY - Cozy arrangements between colleges and the companies that lend their students billions of dollars are far more widespread than anticipated, state Attorney General Andrew Cuomo told The Associated Press yesterday, even as another college financial aid officer was suspended amid a probe into the $85 billion industry. (Newsday -- Business)
CIT places executives on leave amid lending probe Apr 10, 2007
On Friday, Matteo Fontana, a Department of Education official who oversaw the student loan industry, was put on leave after it was reported that in 2003 he owned at least $100,000 worth of stock in Education Lending Group Inc., the former parent of Student Loan Xpress. The company was acquired by CIT in 2005. (Casa Grande Valley Newspapers, AZ)
Aid official at Hopkins is suspended Apr 10, 2007
Matteo Fontana, who oversaw student loan providers for the federal agency, was put on leave after reports surfaced that he owned in 2003 about $100,000 in stock in Student Loan Xpress' former parent, Education Lending Group. "As a company that holds itself to the highest standards of business ethics and integrity, we take the allegations raised by New York Attorney General Cuomo very seriously," CIT, which bought Education Lending Group in 2005, said in a statement yesterday. (SunSpot.net)
Federal Official in Student Loans Held Loan Stock Apr 7, 2007
He said it entered that business in 2005 with the acquisition of Education Lending Group, the parent company for Student Loan Xpress. He said he had undoubtedly voted on the acquisition, but had not been consulted individually about it. (Foster's Daily Democrat)
Fed Suspended In Student Loan Probe Apr 7, 2007
Three large universities Columbia, University of Texas-Austin, and University of Southern California this week suspended their financial aid directors for owning stock during their tenure in Education Lending Group, which has since merged with Student Loan Xpress, the nations eight largest student loan provider ... Burt, like USCs Catherine Thomas, once owned and sold 1,500 shares in Education Lending Group (EDLG) stock in 2003 for a profit exceeding $14,000, according to financial records... (CBS News)
Suspended UT Official Asked To Resign From Federal Committee Apr 7, 2007
Federal records showed Burt also owned 1,500 shares in Education Lending Group, the former parent company of Student Loan Xpress. Meanwhile a US Department of Education official who owned $100,000 worth of stock in Education Lending Group while overseeing lenders is also now on leave. (KWTX.com, TX)
Fed Looked At For Student Loan Investments Apr 7, 2007
According to financial documents and the New York attorney general, the officials in question were once stockholders in Education Lending Group, Inc. (EDLG), which until 2005 was the parent company of Student Loan Xpress. All three schools currently list EDLG as a preferred lender for students needing financial aid. (CBS News -- US)
CUOMO SMELLS BLOOD Apr 6, 2007
appear scandalous: Financial-aid officials at three prominent colleges. Student Loan Xpress, Inc. is currently on the preferred lender list at [more than] 380 schools and it is anticipated that amount will grow to well over 450 by the end of 2003. (New York Post -- Opinions)
College Officials Owned Stock in Lenders Apr 6, 2007
A September 2003 filing with the Securities and Exchange Commission shows Matteo Fontana held at least 10,500 shares of Education Lending Group Inc., the former parent company of Student Loan Xpress ... On Wednesday, Cuomo's office sent a subpoena to Columbia University and sent letters to the University of Southern California and the University of Texas seeking information about financial aid officers ownership of stock in Education Lending Group ... The SEC records show David Charlow, the... (ABC News -- Wire)
SUNY CHANCELLOR TANGLED IN STUDENT LOAN PROBE ... FULTON GETS BUMP IN STATE AID ... A SON'S DISEASE, A FATHER'S VOICE ... ROUNDTABLE TO EXPLORE COLLEGE-COMMUNITY ARTS PARTNERSHIPS ... COLLEGE'S RICE CREEK FIELD STATION TO SHOWCASE SPRING SIGHTS, SOUNDS ... ';var marqueewidth="350px";var marqueeheight="20px";var marqueebgcolor="#FFFFFF";////NO NEED TO EDIT BELOW THIS LINE////////////var pauseit=1;var marqueespeed=1 //slow speed down by 1 for NSvar copyspeed=marqueespeedvar pausespeed=(pauseit==0)? copyspeed: 0var iedom=document.all||document.getElementByIdif (iedom)document.write(''+marqueecontent+'')var actualwidth=''var cross_marquee, ns_marqueefunction populate(){if (iedom){cross_marquee=document.getElementById? document.getElementById("iemarquee") : document.all.iemarqueecross_marquee.style.left=parseInt(marqueewidth)+8+"px"cross_marquee.innerHTML=marqueecontentactualwidth=document.all? temp.offsetWidth : document.getElementById("temp").offsetWidth}else if (document.layers){ns_marquee=document.ns_marquee.document.ns_marquee2ns_marquee.left=parseInt(marqueewidth)+8ns_marquee.document.write(marqueecontent)ns_marquee.document.close()actualwidth=ns_marquee.document.width}lefttime=setInterval("scrollmarquee()",20)}window.onload=populate;function scrollmarquee(){if (iedom){if (parseInt(cross_marquee.style.left)>(actualwidth*(-1)+8))cross_marquee.style.left=parseInt(cross_marquee.style.left)-copyspeed+"px"elsecross_marquee.style.left=parseInt(marqueewidth)+8+"px"}else if (document.layers){if (ns_marquee.left>(actualwidth*(-1)+8))ns_marquee.left-=copyspeedelsens_marquee.left=parseInt(marqueewidth)+8}}if (iedom||document.layers){with (document){document.write('')if (iedom){write('')write('')write('')write('')}else if (document.layers){write('')write('')write('')}document.write('')}}Friday, April 06, 2007 SUNY CHANCELLOR TANGLED IN STUDENT LOAN PROBE Apr 6, 2007
CIT said it acquired Education Lending Group Inc., the parent company of Student Loan Xpress, in 2005, after the stock transactions took place. he reported transactions in securities of that company occurred several years prior to CIT's acquisition of the company, the company said in a statement. (Oswego Palladium-Times, NY)
Officials at Columbia, USC and UT owned stock in lenders Apr 6, 2007
Securities and Exchange Commission records for Education Lending Group Inc. show officials at the three schools in September 2003 owned at least 1,500 shares each of the company. Education Lending Group s subsidiary, Student Loan Xpress, is listed as a preferred lender at each school ... The records show David Charlow, the associate dean of student affairs at Columbia University, owned 7,500 shares of Education Lending Group s stock and owned 2,500 stock warrants at the time of the stock... (KHOU.com, TX)
U.S. Student-Aid Official Held Stock in Lender, Cuomo Investigation Finds Apr 6, 2007
Matteo Fontana held 10,500 shares of Education Lending Group Inc., now a subsidiary of CIT Group Inc., in 2003, according to a September 2003 filing with the U.S. Securities and Exchange Commission ... We've issued subpoenas to CIT and Student Loan Xpress,'' a unit of Education Lending Group ... Cuomo also subpoenaed Education Lending Group's Student Loan Xpress unit, recommended by the schools as a ``preferred'' lender. (Bloomberg)
Daily Briefs Apr 5, 2007
Securities and Exchange Commission records for Education Lending Group Inc. show officials at the three schools in September 2003 owned at least 1,500 shares each of the company. Education Lending Group's subsidiary is listed as a preferred lender at each school. (Atlanta Journal-Constitution -- Business)
College Officers Profited by Sale of Lender Stock Apr 5, 2007
Government filings show that the three officials sold shares in a stock offering by the parent company of Student Loan Xpress in 2003 and held additional stock options in the company, known as Education Lending Group ... The 2003 government filings show that Lawrence W. Burt, associate vice president and director of student financial aid at the University of Texas, and Catherine Thomas, associate dean of admission and director of financial aid at the University of Southern California, also had... (Herald-Tribune)
