Judge Orders Education Department to Pay $16.5-Million to Idaho Loan Agency

A federal magistrate judge has ordered the U.S. Education Department to pay $16.5-million to an Idaho student-loan guarantee agency that claimed it had not been reimbursed by the federal government for payments made on loan defaults and other obligations.

While the case is somewhat unusual because of the particulars of the Idaho agency's situation, the decision could have broader significance because it sides with guarantee agencies in their struggle to

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