Rewarding Bad Behavior
A student-loan company improperly collects millions in fees. Instead of prosecuting the villains and forcing them to pay restitution, the U.S. Department of Education lets the malefactors keep the money:
The Bush administration reached an accord with a student loan company that will let it keep $278 million in subsidies that the inspector general of the Education Department found improper, the department said yesterday.Read the whole sorry thing.
Under the agreement, the department will suspend future payments of more than $800 million, in addition to the $278 million paid to the company, Nelnet, until an audit determines whether the company was eligible for the money.
The inspector general’s office said Nelnet billing practices could lead to its receiving that much in overpayments.
Under Secretary of Education Sara Martinez Tucker said the department had decided not to recover past payments because such a precedent might require it to pursue other loan companies, too, possibly driving smaller ones out of business and reducing borrowing options.
We wish those EduRascals in Washington would "go after" the folks who steal millions with the same gusto that they have when they go after a fourth-grade teacher whose test scores haven't risen by the mandated amount each and every year...