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CROOK ALERT--FEDERAL STUDENT LOAN OFFICIAL OWNED STOCK IN STUDENT LOAN XPRESS

Updated on August 7, 2007

CIT Financial, Student Loan Xpress Parent Company

Student Loan Scandal Widens to Include U.S. Education Department Official Matteo Fontana

The NY Times reported again today on the growing scandal in the student loan business. Matteo Fontana, a senior official in the federal Education Department, sold more than $100,000 in shares in Student Loan Xpress even as he was helping oversee lenders in the federal student loan program. Yesterday, the Times reported that student loan officers at Columbia, UCLA and University of Texas, Austin, apparently were allowed to profit in stock of Student Loan Xpress in return for giving the crooked loan company preferred status on their campuses. Here's a link to today's NYT article by Jonathan Glater and Karen W. Arenson:

http://www.nytimes.com/2007/04/06/education/06loans.html?_r=1&hp&oref=slogin

Here's Matteo Fontana's contact information at the U.S. Department of Education:

http://www.fp.ed.gov/PORTALSWebApp/fp/fontana.jsp

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