Chairman Miller Statement on IG Report on PHEAA and 9.5

Monday, November 19, 2007

WASHINGTON, DC -- U.S. Rep. George Miller (D-CA), the chairman of the House Education and Labor Committee, issued the following response to a report released today by government investigators that estimates that the Pennsylvania Higher Education Assistance Agency (PHEAA) over-billed the U.S. Department of Education by at least $35 million in student loan subsidy payments in recent years. This is the third investigation that the Department’s Inspector General has conducted into lenders’ misuse of federal student aid dollars.

“It is the Department of Education’s duty to be the guardian of all taxpayer dollars in the federal student loan programs and to enforce the law. And yet, for the third time now, we have learned that the Bush administration’s reckless refusal to conduct proper oversight allowed a lender to egregiously misuse tens of millions of taxpayer dollars that were intended to help students and families pay for college. This audit report follows the Department’s recent settlement with Nelnet – which allowed almost 300 million in taxpayer dollars to fly out the window – for similar offenses.

“It is unbelievable that this administration has vetoed a much-needed increase in funding for education and at the same time has barely lifted a finger to recoup federal dollars from prosperous lenders – dollars that rightfully belong to students and families. At the very least, the Department must now follow the Inspector General’s recommendation and recover all improper payments that were made to PHEAA and other lenders.”

###

FOR IMMEDIATE RELEASE
Contact: Tom Kiley / Rachel Racusen
2181 Rayburn House Office Building
Washington, DC 20515
202-226-0853