When choosing a college to attend most teens and their families shop around a little. With tuition skyrocketing, many consumers look at financial aid offered by universities as a top priority when considering which institution to attend. Even with regulations on the books requiring schools to outline how financial aid is distributed, families are finding it nearly impossible to estimate their child’s worth to a school. [More]
While college tuitions and student loan debt has skyrocketed, a number of institutions — especially for-profit schools — have been criticized for failing to provide sufficient education and guidance to students who are then stuck without jobs and without the ability to pay back student loans. Starting Monday morning, the Dept. of Education will begin hearing feedback on a recently drafted regulation that would hold schools accountable for the performance of their students in the real world. [More]
More than 12 million U.S. college students applied for federal aid for the school year starting this fall, but around 126,000 of these applicants have been flagged by schools and the government as potential scammers looking to cash aid checks without ever intending to get an education. [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.