Sheehy’s Misdeeds versus Massive Monetary Fraud at the NU Foundation; Where’s the OWH’s Intrepid Investigators for Serious Stuff?

February 5, 2013


@ Murph: In fact, your Comments about NELNET are not accurate + echo classic NELNET spin.

Below is an accurate summation of this subject which I raised because I believe that Lt. Gov. Sheehy’s actions are inconsequential compared to bona fide monetary misdeeds occurring as we speak at NU + the NU Foundation whose directors also run Union Bank + NELNET even as the Foundation doles out more than $350,000.00 dollars a year to Union Bank for “consulting” in what is clearly a conflict of interest:

Issues: Student Loan Scandals [From the New America Foundation]

“… In December, a federal court judge allowed the lawsuit, which seeks the return to the federal government of $1 billion in taxpayer subsidy overpayments, to proceed against Nelnet and five other student loan companies.”

“Nelnet, which was created in 1998 when Nebraska’s non-profit student loan agency converted to for-profit status, was by all accounts the most aggressive participant in the scheme. Through loan and bond manipulations that it repeated over and over again, Nelnet increased the amount of loans for which it sought the 9.5 percent rate from $393 million in 2001 to more than $3.3 billion in 2004 [with the help of NU, LGUR writing here]

“The good times, however, came to an end in January 2007 when Education Secretary Margaret Spellings barred Nelnet and other lenders that refused to submit to independent audits from receiving any further 9.5 payments.”

“After Spellings made her ruling, the Department’s former leaders acknowledged that they were slow to react to the abuses — ignoring calls from their own employees, key lawmakers, and the Government Accountability Office to put a stop to it. They said that they didn’t fully understand the extent to which Nelnet and other lenders were gaming the system until the Department’s Inspector General released an audit report in September 2006 explaining the illegality of the Nebraska loan company’s actions.”

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