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20
Mar
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by QuestionGirl • 4:44 pm
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The U.S. Department of Education has overcharged millions of Americans with student loans during the past decade despite repeated warnings that it was breaking the law, according to a lawsuit filed yesterday.
A computer glitch apparently caused more than 3 million student loan borrowers to be billed hundreds of millions of dollars more than they owed, said lawyers who brought the class-action suit. It’s unclear how much individuals were overcharged.
“That’s a large amount of money taken from students who trust that this program is run accurately and appropriately,” said Brenda K. Pfeiffer, a 41-year-old Minnesota chiropractor who discovered the problem and is the lead plaintiff.
The Education Department’s student loan programs have been buffeted by a series of controversies and have come under increased scrutiny by Congress. Lawmakers are investigating potential mismanagement and conflicts of interest. Legislation has been proposed to revamp the way the two major federal student loan programs are run.
More at the Washington Post
Filed: Education








