September 18, 2008
Government Losses on 9.5-Percent Loan Loophole May Exceed $1-Billion
Washington
A group of 14 student-loan companies that benefited from a federal subsidy loophole collected nearly three times the amount they may have been entitled to claim without the maneuver, according to a set of independent audits of their operations.
If those audit findings are representative of all loan companies that received subsidies under a program that guaranteed some lenders a 9.5-percent return on their loans, it would mean the government lost nearly $1.2-billion in improper
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