Audit slams student loan oversight agency

Published on:
12 September 2006 at 10:21 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00009009-audit-slams-student-loan-oversight-agency/

The California state auditor has delivered strong criticism of the agency that oversees and administers a federal student loan program, EdFund.

The audit, released Thursday and reported on by the InsideBayArea.com, says that lax oversight and questionable fiscal decisions raise serious doubts about the state’s ability to sustain the program.

Specifically, the audit alleges that EdFund has spent thousands on such things as executive bonuses, parties, and travel — all this while in the face of a $8.3 million operating deficit.

It is likely, the audit claims, that the program will not break even in federal fiscal year 2006.

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