Audit Finds Sallie Mae Subsidiary Overcharged U.S. by $22.3M
- Lender Overcharged U.S. $1 Billion, Audit Finds
- Audit Finds U.S. Overpayments to Lender
- Quick Takes: Welfare Rules Eased, Sallie Mae Settlement, Gandhi Quits Nonviolence Post, Study Abroad Probe, Study Abroad Refund, Wy. Governor Defends Academic Freedom, Leniency for Lender, Dorms for Graduates, Sex vs. Grades at Cambridge
- Stopping a Lender Subsidy, Permanently
- Disputed Accord in Student Loan Case
The Education Department's inspector general said Monday that Sallie Mae had overbilled the U.S. Treasury by $22.3 million in payments made to its Nellie Mae subsidiary from 2003 to 2006. The company inappropriately sought reimbursement from the government for loans financed with tax-exempt bonds, even though the bonds had matured, the inspector general found; Sallie Mae disputed the finding. The lender is the latest in a string of loan providers that the inspector general has found to have abused the tax-exempt bond program, although the Bush administration's Education Department required only one of the lenders, Nelnet, to return the disputed funds.