WASHINGTON - The Academic Loan Group (ALG), a San Diego-based student loan consolidation company, is misleading borrowers in the company’s solicitations, two senior lawmakers said today. Documents distributed by ALG contain a 2003 press release from the office of Congresswoman Rosa DeLauro that has been altered and gives the impression that she and Congressman George Miller endorse ALG’s business practices. The solicitation encourages student borrowers to refinance their federal college loans using ALG’s service.

DeLauro (D-CT-3) and Miller (D-CA-7) today sent a letter to ALG asking the company to cease including these materials in their solicitations.

“Borrowers considering the Academic Loan Group for their refinancing needs should be alarmed over the marketing practices of this company,” said DeLauro. “The company is erroneously giving the impression that we endorse their services by attaching the press release to their solicitations. If ALG cannot be truthful in their advertising, how can borrowers entrust them with their finances?”

"We have made it clear to ALG that they must immediately stop misrepresenting our position in their solicitations," said Miller, the senior Democrat on the House Education and Workforce Committee. "But more importantly, they should stop misleading students into making decisions that may not be in their best interest at this time. Congresswoman DeLauro and I will continue to press Congress to adopt legislation that will benefit students trying to afford the high cost of college. But ALG should not complicate the matter by providing misleading information to potential borrowers."

The full text of the letter follows.

December 16, 2004

We are writing to request that you immediately cease attaching the press release, dated September 26, 2003, from Representative DeLauro's office to your solicitations to student borrowers.

We believe that your company has deliberately included this press release , announcing two higher education bills that we have introduced, to convey the false impression that we endorse your solicitation. Based on documents obtained by our offices, it appears your company even altered our original press release to highlight relevant information on this bill.

Advertising consolidation benefits to student borrowers who have already consolidated their loans, and therefore are not eligible to consolidate their loans again, is a questionable business practice. While that is a matter for you to consider, the deliberately misleading use of our names in your promotional material is a matter for us to consider.

Again, we request that you immediately cease and desist from including this press release with your solicitations or any other materials that may give the impression that we endorse your business.

Thank you for your prompt attention to this matter. We look forward to your response.