February 2, 2007
Lender Allowed to Keep Federal Overpayment of $278-Million
The U.S. Education Department has announced that it will not require the National Education Loan Network, a major for-profit student-loan provider based in Nebraska, to return hundreds of millions of dollars in government subsidies, but it will cut off the overpayments going forward.
The department will also stop paying lenders at the highest subsidy rate until they can prove, via audit, that they qualify for it.
Under the terms of the settlement, announced in January, Nelnet,
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