Students Over Banks brings us some private-sector student-lending corruption fun from Iowa:
We didn’t think we needed any more proof that the Senate student aid bill is absolutely vital for protecting the finances of college students nationwide, but recent developments in Iowa put the icing on the corrupt lending cake.
The public learned Tuesday of the second judicial ruling against Iowa Student Loan Liquidity Corp. in a month. We now know conclusively that between 2004 and 2006, the private, “nonprofit” ISL lied about its eligibility for particular federal subsidies. So now it owes the government $2.4 million.
This is on top of the $15.76 million it was ordered to repay last week after courts discovered that ISL inexcusably used illegal bribes to increase business.
But yeah, it’s really important to keep the private sector involved and well-funded at taxpayer expense.