Affordable Higher Education News

In a letter released today, Chairman Miller and other members of the House Education and Labor Committee call on the Department of Education to tighten oversight of private student lenders who have recently been accused of bilking the government out of billions of dollars in excessive payments.  Yesterday Representatives Petri, Flake and others sent a bipartisan letter to the Department expressing their concern over the January decision to allow lender Nelnet to keep $278 million in payments generated by manipulating the 9.5% loan loophole.

USPIRG Higher Education Advocate Luke Swarthout issued the following statement:

We applaud these members of Congress for addressing the issue of excessive and illicit student lender subsidies.  The Department of Education should ensure that student loan programs serve the interests of students rather than allowing private lenders to pad their profits at taxpayer expense.

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U.S. PIRG, the federation of state Public Interest Research Groups (PIRGs), takes on powerful interests on behalf of the American public, working to win concrete results for our health and our well-being.

For Chairman Miller’s letter: http://www.house.gov/apps/list/speech/edlabor_dem/RelMar7.html

For Congressman Petri and Congressman Flake’s letter: http://www.house.gov/petri/spellingsnelnetltr.pdf