February 4, 2005

Education Department Fails to Oversee College Lenders, Report Asserts

By KELLY FIELD

The U.S. Education Department must improve its oversight of colleges that act as lenders in the federal guaranteed student-loan program, the Government Accountability Office concludes in a report released last week.

The report reveals that the department's Office of Federal Student Aid, known as FSA, failed to collect compliance audits for the 2002 fiscal year from 10 of the 29 college and university lenders that made or held more than $5-million in loans, and did not conduct program

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