Chairman Miller Requests Information from CIT Group on Student Loan Xpress Stock Sale

Wednesday, April 11, 2007

WASHINGTON, DC -- U.S. Rep. George Miller (D-CA), the chairman of the House Education and Labor Committee, today wrote to the CIT Group, the parent company of Student Loan Xpress, requesting information about the company's relationships with colleges' financial aid offices.

Recent news reports have revealed that financial aid officers at three universities and a senior official responsible for administering the federal student loan program at the Department of Education once held stock in the company. Miller has also recently requested similar information from the nation's five largest student lenders, and has asked the Department of Education for information on relationships employees in the Office of Student Aid have with the student loan industry and steps the department has taken to prevent conflicts of interest.

The full text of Miller's letter to CIT Group is below.

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April 11, 2007

Mr. Jeffrey M. Peek
Chairman and Chief Executive Officer
CIT Group Inc.
505 Fifth Avenue
New York, NY 10017 

Dear Mr. Peek:

I write regarding the disturbing revelations that at least one senior federal official at the U.S. Department of Education and financial aid administrators at three universities held stock in the parent company of Student Loan Xpress, CIT Group - a participating lender in the  Federal Family Education Loan Program (FFELP) - at the same time that these individuals held influential positions with respect to overseeing lenders participating in the program and in recommending lenders to students and parents who borrow under the program.  As Chairman of the Committee with oversight of the administration of educational loans and other student aid provided to students and their families, I seek specific information about the relationships between your company and schools' financial aid offices.  My specific questions about these relationships are enclosed.  Please produce the documents and information requested within 10 days of receipt of this letter.

I respectfully request that you coordinate the production of the information requested with Michael Zola, Chief Investigative Counsel, House Education and Labor Committee at (202) XXX-XXXX.

Sincerely,

GEORGE MILLER
Chairman

cc: Buck McKeon

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FOR IMMEDIATE RELEASE
Contact: Tom Kiley / Rachel Racusen
2181 Rayburn House Office Building
Washington, DC 20515
202-226-0853