July 29, 2005

Education Secretary Lets New Mexico Lender Off the Hook

By JEFFREY SELINGO

Keep the change.

The U.S. secretary of education, Margaret Spellings, has decided that the New Mexico Educational Assistance Foundation, a nonprofit lender that the Education Department's Office of the Inspector General has accused of overcharging the government by up to $36-million in payments to subsidize student loans, will not have to pay the money back.

The inspector general's report, issued in May, recommended that the department require the foundation to return what the

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