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"We'd like to think that doctors are somehow immune to the influence of advertising, but turns out they're human after all.
— Debbie C
Drug-Company Association Bans Freebies for Doctors
Another Giuliani Finds His Dream Deferred
Andrew Giuliani, son of the former New York mayor and Republican presidential candidate, has sued Duke University for kicking him off its golf team.
Bible Professor Will Leave Seminary Instead of Facing Hearing
The faculty member wrote a book expressing the view that human beings shaped the Bible, an idea deemed contrary to the conservative seminary’s faculty oath.
Purdue U. Scientist Appeals Findings of Research Misconduct
Rusi P. Taleyarkhan, a nuclear engineer, challenged a university panel that said he had misled other scientists about his research into nuclear fusion.
Embattled Congressman Calls for Investigation Into His Actions on Behalf of CCNY
Rep. Charles Rangel used Congressional letterhead to seek donations for an academic center bearing his name.
Baylor U. Regents Fire President, Citing Failure to Unite Campus
John M. Lilley, the university’s president since November 2005, had been at the center of several recent controversies.
Closed Out? Norman Finkelstein, Controversial Scholar Denied Tenure, Can't Find a Job. | 104
Group Argues That Out-of-Class Learning Is Domain of Faculty, Not Student Affairs | 92
Is There a 'Growing Backlash' Against the SAT? | 59
College Settles With Instructor Fired for Teaching Adam and Eve as Myth | 54
Fresh Artistic Controversy Hits Yale U. | 52
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December 31, 2007
Sallie Mae Faces Education Dept. Audit Over 9.5% Loans
Washington — Sallie Mae, the nation’s largest student-loan company, is facing a further investigation by the Education Department concerning its billing practices.
In a regulatory filing with the Securities and Exchange Commission, Sallie Mae said late last week that the department’s Office of the Inspector General is examining whether the company had complied with federal law when billing for subsidy payments under the 9.5-percent loan program.
The inspector general has issued a series of reports accusing lenders of improperly claiming hundreds of millions of dollars in subsidies through the program, which was intended to give lenders a reimbursement rate of at least 9.5 percent in the 1980s, when general interest rates on the open market were much higher.
The lenders allegedly received windfall profits by continuing to bill for the 9.5-percent reimbursement even after general interest rates fell well below that level. The Education Department announced this year that it would allow lenders to keep those profits if the lenders agreed to stop seeking subsidies through the program.
Sallie Mae, in its regulatory filing, said company officials “believe that our billing practices were consistent with longstanding department guidance, but there can be no assurance that the OIG will not advocate an interpretation that differs from the department’s previous guidance.”
The regulatory filing came a day after Sallie Mae sold $3-billion in securities, $500-million more than planned, to finance a repurchasing of company stock, among other things. —Paul Basken
Posted on Monday December 31, 2007 | Permalink |Comments
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My daughter had a loan with Sallie Mae and her interest rate went up to 18.3%. I used my Home Equity line of Credit at 7.3% to pay them off. Cheaper in the long run. Plus these people are just pigs to deal with.
— Debbie Jan 7, 04:36 PM #