Student Loan Whistleblower Case Heads to Trial
A jury trial is set to begin Tuesday in federal district court in Alexandria, VA, of a long-standing whistleblower lawsuit filed by former U.S. Department of Education civil servant Jon Oberg against the student lender and collection agency Pennsylvania Higher Education Assistance Agency (PHEAA).
This case may at last provide a public verdict regarding the notorious 9.5 scandal, in which student lenders overcharged taxpayers hundreds of millions of dollars in interest rate subsidies.
Oberg filed the False Claims Act case against multiple lenders in 2007, and in 2010 four of those lenders paid the United States a total of $57.75 million.
PHEAA has pursued numerous efforts to dismiss the case and to appeal, but after a recent trip to the Supreme Court, Oberg’s claims have survived. Unless the parties settle this week, the case will be tried.
According to the court’s public docket, the trial will begin November 28 before District Judge Claude M. Hilton at the U.S. courthouse in Alexandria.