The Chronicle is reporting (here) on a lawsuit filed against several loan providers who received the same sort of subsidies:
I can't find any more information tonight on what other companies might be named as defendants. Does anyone have information on whether the Student Loan People are or are not included?
A former Education Department researcher has filed a lawsuit seeking the return of $1-billion in excess student-loan subsidies to the federal government.
Jon H. Oberg, who retired in 2005, says he warned his superiors in 2003 about a loophole that was allowing some of the nation's largest lenders to reap windfall profits from the federal government, but was brushed off and told to work on other things.
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The lawsuit, which Mr. Oberg filed in the U.S. District Court for the Eastern District of Virginia, takes aim at several student-loan companies, including Nelnet and Sallie Mae.
For more on the Best-in-Class debacle, my earlier posts are here, with the specific one on the subsidy income here.
[The word ineligible should have been in the original post, and I've inserted it above.]