The Rhode Island Student Loan Authority paid $9 million to resolve allegations of obtaining more money than a non-profit student loan agency should.
The RISLA has violated federal tax regulations on profits from loans to students after accounting for its borrowing costs.
There were 15 cases where the agency allegedly transferred student loans from one bond issue to another bond issue, which in turn did not pay out the loan.
RISLA's deputy director, chief financial and compliance officer Noel Simpson stated that the settlement that was reached last month is just like other ones that the IRS had attained in other states.
Simpson also stated that this has not stopped the agency from still providing low-cost loans for students.
There was no fine and there is no effect on any of the authority's programs.
WLNE-TV / ABC6 2013