SPRINGVALE — The Finance Authority of Maine is pressuring the federal government to use its leverage in the student loan program to go after the former owner of Nasson College.

The U.S. Department of Education last week allowed Edward P. Mattar III to repurchase three buildings at the now-dormant Nasson campus, even though Mattar had defaulted on mortgages and misused the student loan program, said FAME spokesman Charles Mercer.

While Maine’s congressional delegation looks for procedural errors on which to challenge the legitimacy of the sale, FAME is trying to hurt Mattar in the wallet.

FAME wants the education department to crack down on Mattar’s access to federal student loans at his Rhode Island business training school.

The Nasson Institute, which operates three schools in Rhode Island, is close to losing eligibility because its student loan default rate is 42.1 percent — nearly four times the national average of 10.4 percent.

Although the federal government gives loans to individual students, it holds schools accountable for a high default rate because it is often a signal of deteriorating quality.

A school’s eligibility to participate in the federal student loan program is jeopardized when its loan default rate rises above 25 percent for three years, according to the DOE. Nasson’s rate was 23.6 percent in 1993, 36.5 percent in 1994, and 42.1 percent in 1995.

On top of the problems in Rhode Island, Mercer said, Mattar still owes $78,000 in refunds to students who withdrew early from Career Institute in Sanford before it closed in August 1994. Mattar also could owe $189,000 in reimbursements if the DOE pressured him to repay forgiven loans connected to Career Institute.

“Mr. Mattar has to be made aware that the state of Maine and the Department are serious about these issues,” said Mercer. “We have to look at all tools available. Mr. Mattar has shown historically his unwillingness to put money on the table in most situations.”

The Department of Education declined to comment on Mattar’s actions or his school in Rhode Island.

“We’re still looking into a number of issues, not just in Sanford but in his three schools in Rhode Island. We’re preparing a detailed response, soup to nuts … We’re trying to be as complete as possible,” said DOE spokeswoman Stephanie Babyak.

Mattar, who lives in Deerfield Beach, Fla., could not be reached for comment.

A Nevada corporation controlled by Mattar bought the mortgages on the three Springvale buildings last week from the DOE, which would have enabled him to call off the auction had he chosen to do so.

But by holding the auction — in which Mattar served essentially as buyer and seller — he was able to eliminate some liens on the property.

U.S. Rep. Tom Allen has requested an investigation of the 12-year relationship between Mattar and the DOE.