October 13, 2006

Ed. Dept. Audit Cites Lax Loan Oversight

By JEFFREY SELINGO

The U.S. Education Department's Office of Inspector General has accused the agency's division that administers the federal government's guaranteed-student-loan program of lax oversight of the 3,500 lenders and other loan servicers that participate.

The findings are part of a 34-page audit released by the inspector general last month. According to the report, Financial Partners, a division within the department's Federal Student Aid office:

  • Emphasized partnership over

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