Student Loan Agencies Immune From Qui Tam FCA Suit

Law360, New York (December 7, 2012, 4:31 PM EST) -- A Virginia federal judge on Wednesday tossed four quasi-state student loan financing agencies from a long-running False Claims Act qui tam suit accusing them and others of improperly inflating interest rate subsidies from the U.S. Department of Education, ruling they are immune from such lawsuits.

U.S. District Judge Claude M. Hilton ruled that the Vermont Student Assistance Corp., the Kentucky Higher Education Student Loan Corp., the Arkansas Student Loan Authority and the Pennsylvania Higher Education Assistance Agency are arms of their respective states and thus immune...
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