June 17, 2005

Education Dept.'s Inspector General Says Lenders Should Return Money

By STEPHEN BURDWashington

A fight is brewing over a loophole in federal student-aid law that has allowed some lenders to reap windfall profits from the government. And one possible resolution could cost certain lenders tens of millions of dollars.

Last month the U.S. Education Department's Office of the Inspector General issued an audit report accusing the New Mexico Educational Assistance Foundation, a nonprofit lender, of having overcharged the government by up to $36-million in payments to subsidize loans

Print Subscription

Digital Subscription

Already have an account? Log In Now.