WASHINGTON IN BRIEF

Education Dept. Improperly Paid $278 Million in Subsidies

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The Education Department improperly paid lender Nelnet Inc. more than $278 million in student-loan subsidies from early 2003 through mid-2005 and should demand repayment of the money, the department's inspector general said in a report released yesterday.

The department erred in awarding payments that gave Nelnet a much higher return than lenders are ordinarily entitled to receive on federally subsidized student loans, the report said.

The type of subsidy Nelnet claimed has long been criticized as a windfall for lenders, and Congress has sought to curtail it because it guaranteed lenders a minimum interest rate on certain loans even when prevailing rates were much lower. If the department does not stop making the improper payments, Nelnet could receive an additional $882 million, the report said.

Nelnet said in a news release that it followed the rules. The company, based in Lincoln, Neb., told investigators that the department paid its bills without objection, according to the report. Nelnet moved loans through a series of transactions to continue claiming they qualified for the subsidy, and it increased the amount of loans for which it sought government payments from about $551 million in early 2003 to about $3.7 billion in mid-2004, the report said.

Education Secretary Margaret Spellings "wants a thorough and comprehensive review of the inspector general's report . . . after which the department will make known how it will proceed," department spokeswoman Katherine McLane said.

More Companies to Offer Medicare Drug Coverage

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Many elderly and disabled Americans participating in the Medicare drug benefit next year will have more plans to choose from as the number of companies offering coverage nationwide jumps to 17.

Officials stressed that seniors satisfied with their prescription drug coverage won't need to take any action when Medicare's open-enrollment period begins Nov. 15. But if they want to look around, they will have plenty of chances to comparison-shop.

This year, nine companies offered nationwide coverage. Next year, that number will be 17, and scores of regional companies also will offer plans. In most states, beneficiaries had more than 40 plans to choose from this year.

The officials said the monthly premium that beneficiaries pay next year will average $24 -- about the same as in 2006.

Sudan Delays Granting Visa To Newly Appointed U.S. Envoy

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Sudan appears to be balking at granting a visa to the new U.S. special envoy for Sudan, Andrew Natsios, and is restricting the movement of all U.S. officials to Khartoum, the State Department said. Relations have deteriorated sharply in recent months between Washington and Sudan, which is under growing international pressure to allow a U.N. force into its war-torn Darfur region.

"He has not been granted a visa yet. Certainly, I think Andrew would very much want to travel to Khartoum. We are having some difficulties now with the Sudanese government," said State Department spokesman Sean McCormack, who declined to provide specific details.

Sudanese President Omar Hassan al-Bashir said last weekend his government would impose a travel ban on U.S. officials, confining them to Khartoum. That would rule out any visits to Darfur.

-- From Staff Reports and News Services