CINCINNATI (AP) -- The University of Cincinnati has paid $9.2 million to former students, banks and the federal government related to a faulty student loan tracking system from 2002 to 2005.
The Cincinnati Enquirer reports (http://cin.ci/HFJOfm ) the Department of Education ordered UC to notify more than 2,300 former students that they may not have been entitled to loans they received. Some might have to pay taxes since UC technically is forgiving the loans.
The university says the problems have been corrected. But UC in those years allowed students to receive federal aid when the university couldn't confirm if they had withdrawn from classes or attended them.
University spokesman Greg Hand says money was put aside in several budgets to cover payments.
Education Department officials say multiple institutions have had to make similar payments.
Information from: The Cincinnati Enquirer, http://www.enquirer.com