Information is provided on the activities of the First Independent Trust Company (FITCO) of Carmichael, California, which made loans to students participating in the Stafford Student Loan Program until California's State Banking Department closed it in May 1989. During the 11 years FITCO was in the Stafford program, it made over $1 billion in loans that were guaranteed by the California Student Aid Commission and the Higher Education Assistance Foundation. Most of FITCO's loans were made to students attending proprietary schools. FITCO had problems keeping current its loan origination fee payments to the United States Department of Education. Twenty-one audits and reviews of FITCO activities were identified, each of which found minor or major deficiencies in FITCO's operations. The report describes the chronology of events from when FITCO began, ceased operations, and became involved in a lawsuit with the California Banking Department. The report describes the types of loans made under the Stafford Student Loan Program, lists selected milestones detailing FITCO's activities, presents an analysis of FITCO's remittance of loan origination fees, and offers a chronology of audits and reviews performed at FITCO. A list of 14 related General Accounting Office products is appended. (JDD)