Mr. Fontana was put on leave by the department after his ownership of stock in a student lender was disclosed.

Even in the face of intense legislative and regulatory pressure, the company said that its growth as student lender remained compelling.

His will established the Pickett & Hatcher Educational Fund, a non-profit student lender.

The largest student lender in the country, Sallie Mae, is also listed as a defendant in the case.

Mr. Cuomo's latest investigation has revealed that top officials at several universities had lucrative financial ties to a major student lender.

Sallie Mae, the biggest student lender, was selected for the terms of its loans, said Joyce Hall, executive director of the university's financial aid division.

Later that year the company became a full-service student lender.

He told an audience of commercial student lenders earlier this month that "I've got enough rabbits up my sleeve" to make them happier with the bill.

And Student Loan is the nation's leading student lender.

Sallie Mae is the nation's largest student lender; indeed, it dominates the business.