On the eve of the Congressional elections, a report has surfaced that reinforces the close ties between members of the student-loan industry and Republican leaders.

Now that polls show that Democrats have a good chance of gaining control of the House of Representatives and possibly the Senate, many lenders fear they will pay for tying their fortunes so closely to the Republican Party.

According to the nonpartisan Center for Responsive Politics, no company has donated more money this year to the National Republican Congressional Committee than the National Education Loan Network, a major for-profit student-loan provider based in Nebraska.

Officials with the company, known as Nelnet, have given, individually and through the company's political-action committee, $153,000 this year to the National Republican Congressional Committee, which is the fund-raising arm of Republican leaders in the U.S. House of Representatives. The committee's Web site says it is dedicated to "increasing the 231-member Republican majority" in that chamber.

Nelnet's three top executives each gave the panel donations of $26,700, the most individuals are allowed under the law to contribute to a national party committee in a single calendar year...

News of the contributions, first reported on Friday by Higher Ed Watch, a blog of the New America Foundation, raised eyebrows as the company has recently been accused by the U.S. Education Department's Office of Inspector General of overcharging the federal government for subsidy payments on some loans it made to students (The Chronicle, October 2)...

For the complete article, please visit The Chronicle of Higher Education website.