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The Incredible, Rage-Inducing Inside Tale of America’s Scholar Debt Device

The Incredible, Rage-Inducing Inside Tale of America’s Scholar Debt Device

ASSOCIATED: One Bold Method To Blow Within the University Debt Nightmare

Also before it created FedLoan, there clearly was lots of explanation to think that PHEAA’s priorities had been askew. In 2007, investigations by news outlets, like the Patriot-News, based near PHEAA’s Harrisburg head office, revealed the agency had given out $2.5 million in bonuses to professionals that 12 months together with spent nearly $1 million between 2000 and 2005 up to speed retreats that included $150 cigars and falconry classes. Then-CEO Richard Willey made almost $500,000 in 2007: their $181,000 bonus that 12 months was significantly more than the salary that is governor’s. Amid this criticism, Willey resigned.

That same 12 months, PHEAA had been sued by Jon Oberg, a previous Education Department researcher whom accused it and eight other state and nonprofit lenders and guarantee entities of intentionally overcharging the federal government. In PHEAA’s instance, this allegedly amounted to $116.5 million between 2002 and 2006. All of the agencies had been swept up within the scandal, a former training division official who asked not to ever be called explained, but PHEAA had been “particularly bad.” In 2017, PHEAA was acquitted of defrauding the department; the verdict is on appeal december. (The others called within the suit settled or had their cases dismissed.)