P.M. BRIEFING : Florida Bank Makes Restitution

ST. PETERSBURG, Fla. —  Florida Federal Savings Bank agreed to pay more than $18 million to settle charges that it billed the Education Department for student loans it had never tried to collect, the Justice Department said.

The settlement, finalized late Monday, calls for the thrift to pay $17.89 million in restitution to the federal government. It also calls for the thrift to correct the credit ratings of students whose loans were improperly labeled delinquent.

The settlement also calls for Florida Federal to pay $150,000 to release most bank officers and employees from liability.

In documents submitted to the Education Department for reimbursement of guaranteed student loans, the thrift claimed it had attempted to collect on the loans. In fact, it had not done so, the Justice Department said.