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Attorney General Edmund G. Brown Jr. Demands Answers From College Lenders

Tuesday, April 17, 2007
Contact: (415) 703-5837

California Attorney General Edmund G. Brown Jr. demanded two California student-loan businesses produce records concerning their financial relationships with public and private universities, and vocational schools in California as part the Department of Justice’s ongoing probe into the student-loan industry.

The companies are Education Finance Partners Inc. of San Francisco and Student Loan Xpress Inc. of San Diego.

“Schools and universities in California must be above reproach, and no further burdens should be visited upon students who are already weighed down by escalating student-debt responsibilities,” Brown said.

The Department of Justice is seeking the information to determine whether the lenders made unlawful payments to schools or university personnel.

The department is investigating whether any schools have improperly chosen some lenders in preference to others, and whether unlawful payments have been made to schools from the student lending institutions.

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