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Congress had to rein in this program for a student loan company in 1993. The loans increased dramatically anyway as lending companies sought ways to increase their portfolios of loans that they said fit the guarantee. The office of the Education Department inspector said this student loan company, when interested rates were low, enlarged its portfolio of loans from 551 million dollars in 2003 to 3.7 billion dollars in 2004. The report found that this student loan company exploited the 9.5 percent interest rate to make more money. When it added more and more borrowers to the program, it could make more and more money from the interest. In 2006, this student loan company had 3 billion dollars in loans it considered part of the 9.5 percent payments. This student loan company is not the only lending company being accused of doing this. The Education Department said that it would stop paying claims from other lending companies until an audit is done.

A non-profit college loan company in New Mexico called New Mexico Education did the same thing as Nelnet in 2005.