UT Administrator Suspended Amid Financial Aid Investigation

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The University of Texas has put its financial aid director on paid leave during a stock-related investigation.

Allegations have been raised that a loan company gave him stock in exchange for making it one of the school's preferred lenders.

Associate vice president Lawrence Burt is part of a widening investigation by New York Attorney General Andrew Cuomo into the 85 billion dollar student loan industry.

Burt denies wrongdoing.

The general counsel for the UT System will lead an internal investigation.

Securities and Exchange Commission records show Burt at one time owned 1500 shares in Education Lending Group. That's the former parent company of Student Loan Xpress, which is a preferred lender at UT.

Burt has denied any financial arrangement between either himself or UT and the company.

Education Lending Group was bought by another company in 2005.