October 18, 2007
Lenders Repay $17.6-Million in Federal Subsidies Collected Through Servicing Company's Error
Affiliated Computer Services, a loan-servicing company used by many of the largest lenders in the federal guaranteed-student-loan program, overbilled the U.S. Education Department by $17.6-million for subsidies on the loans it handles, the department confirmed on Wednesday.
The overpayments, which occurred over a 10-year period, were a result of a software error at Affiliated Computer Services, or ACS, which collects payments and provides other services for lenders on some nine
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