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Politics
Education official put on leave in loan inquiry
By ASSOCIATED PRESS
Published April 7, 2007
WASHINGTON - A Department of Education official who oversaw the student loan industry and who owned at least $100,000 worth of stock in a student loan company has been placed on leave, a department spokeswoman said Friday. Matteo Fontana, who oversees lenders and guarantee agencies that participate in the Federal Family Education Loan Program, was placed on leave with pay a day after his ownership of the stock in Education Lending Group Inc. was disclosed. The case has been referred to the inspector general, said department spokeswoman Katherine McLane. At issue is whether Fontana violated department conflict-of-interest rules. McLane also said Education Secretary Margaret Spellings has asked for the resignation of Lawrence Burt from the department's Advisory Committee on Student Financial Assistance, which provides guidance to Congress and the secretary of education on student financial aid policy. Burt, associate vice president and director of student financial aid at the University of Texas at Austin, is under investigation by the UT System Office of General Counsel regarding allegations of impropriety.
[Last modified April 7, 2007, 02:00:41]
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