Nelnet, Inc. To Pay $55 Million To Settle Lawsuit

On August 13, 2010, Nelnet, Inc. announced that it has agreed to pay $55 million to the Government to settle a lawsuit alleging that the company made false statements in order to obtain Government subsidies for originating federally-guaranteed student loans.  The lawsuit asserted that Nelnet used excessively aggressive tactics to convince students to apply for federally guaranteed loans and then used those applications to receive government subsidies above the allowed rate.  The qui tam lawsuit was brought by Jon Oberg, a former U.S. Education Department researcher.

Tags: Government Programs Fraud