AMARILLO, TEXAS -- Four student loan companies are paying the U.S. government nearly $58 million to settle claims they inflated their interest rate subsidies from the U.S. Department of Education.
Under the whistleblower settlement finalized Wednesday, Nebraska-based Nelnet paid the government $47 million, as well as funds to a whistleblower who filed suit.
Also contributing were Southwest Student Services Corp., Texas-based Brazos Higher Education Authority and Brazos Higher Education Service Corp., Texas-based Panhandle Plains Higher Education Authority and Panhandle Plains Management and Servicing Corp.
Jonathan Oberg, a former Education Department employee, filed the suit. He received $16.6 million from the settlements. The settlements were announced in August.
So we called and the Panhandle Plains Higher Education Authority, based it Canyon. It turns out that company also operates the Panhandle Plains Management and Servicing Corp. We asked if students who have or had loans with the company will get any compensation. We were told the only people who could answer that question are the company's officers, who are out of town until Thursday.
