Dude. I want my $278M in tax dollars back.

[Infomaniac]

http://online.wsj.com/article/SB117642836964868636.html?mod=googlenews_wsj


Did Revolving Door Lead
To Student Loan Mess?
Critics Blame Lax Oversight
Resulting From Close Ties
Of Industry, Government
By JOHN HECHINGER and ANNE MARIE CHAKER
April 13, 2007; Page B1

Four years ago, Sally Stroup, then an assistant secretary at the U.S. Education Department, got a memo from the agency's inspector general urging her to curb any "illegal inducements" lenders might be using to win college loan business

A later report by the inspector general confirmed Mr. Oberg's findings. It focused on student loan company Nelnet Inc., which figured out a complicated strategy to collect about $278 million in what the report said were excessive payments from the government from January 2003 through June 30, 2005. The report recommended that the department require Nelnet to "return the ... overpayments received and exclude ineligible loans from future billings." In securities filings addressing the issue, Nelnet said it had received verbal approval from the department to collect the higher rate.

Despite the inspector general's report, the Education Department announced this past January that it would let Nelnet keep the bonanza, though not future payments. In a statement, Nelnet spokesman Ben Kiser said the company's receipt of those payments conformed to department regulations. Ms. McLane says the settlement was in "the best interests of taxpayers and students" because seeking repayment could have jeopardized a source of aid in some markets.

Seeking repayment COULD have jeopardized a source of aid in some markets? Too bad. Too sad. I'm sure the folks at Nelnet are familiar with making payments on an installment basis. You know something like what I remember doing when I repaid my student loans. We're squeezing poor people to repay thousands in student loans, but we can let a profitable public company slide on nearly 300 million dollars. Damn, these corporate welfare cases are expensive. This is only one company too. Fuckers are all for the free market until it comes down to bite the bottom line.

[phoebe]

1. here are the main players

http://www.nelnetinvestors.net/directors.cfm?bio=Dunlap200

snip


Michael S. Dunlap
Chairman and co-Chief Executive Officer

Dunlap is currently the non-executive Chairman of Union Bank and Trust Company and also serves as a Director and President of Farmers & Merchants Investment Inc., the parent of Union Bank and Trust Company.

Dunlap serves on the President's Community Council for Union College and the Board of Directors for the University of Nebraska Foundation. In addition, Dunlap is a member of the Board of Directors of Linweld, Inc.; Capital Casualty Company; and BankFirst of Norfolk.

Dunlap is a member of the Nebraska State Bar Association. He received a B.S. degree in finance and accounting in 1986 and a J.D. degree from the University of Nebraska in 1988. He lives in Lincoln, Nebraska, with his family.

(as a lawyer shouldn't he know the difference between illegal and legal??)

Chairman of the Executive Committee

Stephen F. Butterfield
Vice Chairman and co-Chief Executive Officer

Member of the Executive Committee

James P. Abel
Director

Mr. Abel serves on the Boards of Directors of Ameritas Life Insurance Corp. and Linweld, Inc. and is an Advisory Board Member for the US Bank Lincoln. He is Chairman of the Nebraska Game & Parks Foundation and is on the Boards of the University of Nebraska Foundation and Nebraska Wesleyan University. Mr. Abel received a B.S. degree from Arizona State University in 1973.

Chairman of the Compensation Committee

Don R. Bouc
Director

Bouc participates as a member of various civic and student loan industry related boards. Currently, Bouc is a member of the Board of Trustees of Health Lincoln, Junior Achievement/Lincoln, and the Nebraska Independent College Foundation. In 2001, he was appointed by the Secretary of Education to the Federal Advisory Committee on Student Financial Assistance. The 11 members of the advisory committee provide advice and counsel to the Secretary of Education and Congress regarding student financial aid policy. In 2003, Bouc was elected to serve on the Junior Achievement Worldwide Board of Directors. Bouc also was recently appointed to the Board of Directors of the National College Access Network and the Board of Directors of the Foundation for Lincoln Public Schools.

Thomas E. Henning
Director

Thomas E. Henning, 54, has served as a member of our Board of Directors since August 2003. He serves on the audit, as well as the nominating, and governance committees.

Mr. Henning serves as President and Chief Executive Officer of Assurity Security Group Inc. and its wholly owned subsidiaries, Security Financial Life Insurance Co. and Assurity Life Insurance Company. Previously, Mr. Henning served concurrently as President and Chief Operating Officer of National Bank of Commerce of Lincoln, Nebraska, and Executive Vice President of First Commerce Bancshares between 1985 and 1990.


Financial Expert of the Audit Committee
Member of the Nominating and Corporate Governance Committee

Arturo Moreno
Director

From 1984 until 1999, Mr. Moreno served as President, Chief Operating Officer, and a Director of Outdoor Systems, Inc. Under his leadership, the company became the largest outdoor advertising organization in North America and the first such company to go public. In 1999, the company was sold to Infinity/CBS and, in 2000, it merged with Viacom. In June of 2003, Mr. Moreno purchased the Anaheim Angels Professional Baseball Team and currently serves as its President and Chairman.


Brian J. O'Connor
Director

Since 1997, Mr. O'Connor has held the position of Senior Vice President at Hutchinson, Shockey, Erley & Co., which underwrites and trades securities for various local governments in Arizona and the western United States. Previously, he was Senior Vice President with Alden Capital Markets, Inc., Senior Vice President for Capital Markets Corporation and Vice President for Security Pacific Merchant Bank in Phoenix. From 1983 to 1987, Mr. O'Connor was with Boettcher & Company, Inc., a regional investment banking firm specializing in municipal finance.

Chairman of the Audit Committee
Member of the Nominating and Corporate Governance Committee
Member of the Executive Committee

Michael Reardon
Director

Mr. Reardon is the President of ProVision Communications, a telecommunications consulting firm established in 2000. He has also served as the Chairman of HyperFlo, a manufacturer of precision cleaning equipment since 1997. Prior to 1977, Mr. Reardon founded and operated a cellular telephone company.

James H. VanHorn
Director

[Infomaniac]

2. Thanks.