UPDATE: A Department of Education reps tells Animal New York that the search warrant, in spite of what was reported by local TV outlets (see video below) was for a criminal investigation and not in regards to a defaulted student loan. [More]
A 2010 GAO studied showed that federal aid to students at for-profit colleges had tripled over a five-year period from $8 billion to $24 billion and now accounts for 23% of the total aid given out, even though enrollment at for-profit schools only accounts for 8% of college students. Meanwhile, studies continue to show that an inordinately small number of students at these schools ever graduates. In an effort to cut back on the number of people left with mammoth amounts of student loan debt they can’t pay back, the U.S. Dept. of Education has issued a new edict: Show us your college actually prepares students for gainful employment or risk losing out on that lovely loan money. [More]
Remember that whole student loan scandal, where lenders illegally gave gifts to financial aid officers? The Department of Education doesn’t! A damning GAO report claims that the DOE:
The Department of Education wants you to know that they’ve sent warning letters to 921colleges and universities warning them not to limit students in their choice of lenders, according to the Chicago Tribune.
Jeff Baker, policy liaison at the Education Department’s federal student aid office, said a search of a student loan database showed that a vast majority of students at each of 921 campuses chose the same lender.
The Department of Education has unveiled FAFSA4caster, an online tool to help high school juniors predict their eligibility for college aid. The tool was developed in response to the Commission on the Future of Higher Education’s calls for a faster, more streamlined college aid application process.
Has the US Department of Education been unfairly overcharging millions of Americans despite “repeated warnings that it was breaking the law?” According to a lawsuit filed yesterday, the Department of Education may have some explaining to do.