$6 Billion in Improper Student Aid Payments Found at Ed Dept

"Members of Congress criticized the Education Department on Thursday over $6 billion in improper payments made as part of federal student aid programs," The Associated Press reports.
 
"Kathleen Tighe, inspector general at the Education Department, told a House hearing that the department made $2.21 billion in improper payments as part of its Pell grants program in 2016 and $3.86 billion as part of the Direct Loan program. Overall, the department last year awarded nearly $125 billion in financial aid to nearly 12 million students.
 
Improper payments are disbursements that should not have been made, went to the wrong recipient, were for an incorrect amount or were not documented properly. Not all improper payments result in a liability for the federal government. ...
 
Justin Draeger, president of the National Association of Student Financial Aid Administrators, said it was unclear how many of the improper payments were intentional and how much was accidental.
 
'It's difficult for me to give an exact percentage of how much is fraud and how much is just honest mistakes,' Draeger said."
 
NASFAA's "Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

 

Publication Date: 5/26/2017

View Desktop Version