ALBANY, N.Y. - The federal Education Department official who oversees lenders owned about $100,000 worth of stock in a student-loan company now under investigation in an expanding nationwide probe of the $85 billion student-loan industry.

A September 2003 filing with the Securities and Exchange Commission shows Matteo Fontana held at least 10,500 shares of Education Lending Group, the former parent company of Student Loan Xpress. The shares were valued about $9.50 each at the time, according to New York Attorney General Andrew Cuomo's office, which is leading the investigation.

Fontana currently oversees all lenders and guarantee agencies that participate in the Federal Family Education Loan Program, Higher Ed Watch reported.

Student Loan Xpress is now part of CIT Group, one of several lenders targeted in Cuomo's probe.

Fontana's stock ownership was first reported Thursday by Higher Ed Watch, part of the New America Foundation...

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