Suspended UT Official Asked To Resign From Federal Committee

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Posted: 4:25 PM Apr 6, 2007
Last Updated: 4:14 PM Apr 6, 2007

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(April 6, 2007)--Education Secretary Margaret Spellings has asked for the resignation of Lawrence Burt from the department's Advisory Committee on Student Financial Assistance.

Burt is associate vice president and director of student financial aid at the University of Texas at Austin.

He's under investigation by the UT system regarding allegations of impropriety.

UT put Burt, who has denied wrongdoing, on paid leave Thursday.

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.

Matteo Fontana oversaw lenders and guarantee agencies in the Federal Family Education Loan Program.

Fontana was put on leave one day after his ownership of stock in disclosed.

The case has been referred to the inspector general.

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