Looks like Widener is going to need it’s Law Students to work overtime…

The CIT Group said today that it had put on leave three top executives of its student loan unit, Student Loan Xpress, after revelations last week that stock in that company had once been held by financial aid administrators at three universities and by an Education Department official who helps oversee the federal student loan program.

“We take the allegations raised by New York Attorney General Cuomo very seriously,” said Jeffrey M. Peek, chairman and chief executive of CIT, which acquired Student Loan Xpress 2005. “The management changes announced today should facilitate CIT’s independent review of Student Loan Xpress’s student lending practices and its assessment of existing policies and procedures governing student lending.”

the office of Andrew M. Cuomo, the New York attorney general, sent letters to three universities — Johns Hopkins University, Widener University and Capella University — raising concerns about relationships they had with Student Loan Xpress. At each school, according to Mr. Cuomo’s office, the loan company is a lender recommended to students.

 At Widener, the attorney general’s office said Walter Cathie, dean of the financial aid office, ran a separate company called Key West Higher Education Associates that held conferences on student loans. Student Loan Xpress paid Mr. Cathie’s company approximately $80,000 to send its representatives to the conferences, Mr. Lawsky wrote.

A spokesman for Widener said the university was looking into the matter.

I can’t help but to think this wouldn’t be a problem if our, your government had done just a little more to help out the students instead of the lenders.  But what do I know, I just am stupid for thinking that GUARANTEED repayment for a loan that can NOT be forgiven in a Bankruptcy shouldn’t be suspect to sub prime rates.  Ahhhhh, but I’m stupid…