Student Lenders Pay $57.8M In Subsidies Case

Law360, New York (November 17, 2010, 5:58 PM EST) -- Nelnet Inc. and three other student-aid lenders have shelled out nearly $57.8 million to the U.S. government to settle whistleblower allegations that they collected improperly inflated interest rate subsidies from the U.S. Department of Education.

Nelnet has paid $47 million to resolve claims of violating the False Claims Act in a case filed in the U.S. District Court for the Eastern District of Virginia, according to the U.S. Department of Justice on Wednesday.

Southwest Student Services Corp. has forked over $5 million, Brazos Higher Education Service...
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