Senators: No More Federal Funding To For-­Profit Colleges That Strip Students Of Legal Rights

Senators: No More Federal Funding To For-­Profit Colleges That Strip Students Of Legal Rights

If your college breaks the law, you should be able to pursue a legal action in court. But ­­following the lead of banks, wireless providers, and cable companies some for-profit colleges have been stripping students of their legal rights and forcing them into arbitration. These schools should not receive federal funding, says one group of lawmakers. [More]

New Student Aid Enforcement Unit Created To Address Alleged Fraud At For-Profit Colleges

New Student Aid Enforcement Unit Created To Address Alleged Fraud At For-Profit Colleges

With thousands of former Corinthian Colleges students waiting to find out if their federal student loan debts will be discharged because the now-defunct for-profit college allegedly deceived them with false promises related to their future careers, the Department of Education announced the creation of a special enforcement unit with the goal of being able to respond quickly to allegations that colleges are violating the law. [More]

For-Profit Beauty School Chain Shuts Down Just Days After Losing Federal Funding

For-Profit Beauty School Chain Shuts Down Just Days After Losing Federal Funding

Just days after losing access to federal student financial aid because it allegedly falsified records and overcharged students, the for-profit Marinello Schools of Beauty has  shuttered all of its campuses. [More]

Two For-Profit College Chains Lose Government Funding Over Misrepresentations, Inflated Job Placement Rates

Two For-Profit College Chains Lose Government Funding Over Misrepresentations, Inflated Job Placement Rates

If you hear a for-profit college touting its high job-placement rate, you’ve got good reason to be skeptical. Federal regulators have cut of government funding to two more for-profit education chains caught inflating placement stats.
[More]

Dept. Of Education Working On Rules For Defense Of Repayment Law After Influx Of Claims

Dept. Of Education Working On Rules For Defense Of Repayment Law After Influx Of Claims

Under federal law, student loan borrowers may be eligible to have their debts discharged if they prove the school they attended deceived them with false promises related to their future careers. However, the measure has been used only sparingly in the past and few clear rules outline the forgiveness process. Now, after nearly two decades on the books, federal officials are finally getting around to crafting rules that could remove one roadblock for students seeking relief.   [More]

How The Federal Government Tries To Keep Financially Troubled Colleges From Failing

How The Federal Government Tries To Keep Financially Troubled Colleges From Failing

Under federal law, colleges that record a student loan default rate of 30% or more for three consecutive years – or 40% in a single year – can lose their access to federal aid. While the rule is meant to weed out bad players and schools that don’t provide students with means for gainful employment, a new report shows that the government often intervenes, propping up schools just before they fail.  [More]

7 Things We Learned About Federal Student Loans & The Companies That Profit From Them

7 Things We Learned About Federal Student Loans & The Companies That Profit From Them

Fifty years ago, Congress created the federal loan program as a way to help Americans realize their dreams of a better life through higher education. While millions of students have no doubt benefited from the program, millions of others have found themselves burdened by mountains of debts, fielding calls from debt collectors and loan servicers, and watching as their paychecks are whittled down by garnishments. Today, seven million former college students are in default with a record $115 billion in federal loans. While those figures may be oppressing borrowers, it’s providing a stream of income – and profit – for companies contracted by the government to collect payments from debtors.  [More]

Feds Forgive $103M In Debt For Nearly 7,000 Former Corinthian College Students

Feds Forgive $103M In Debt For Nearly 7,000 Former Corinthian College Students

Nearly 7,000 additional former students of defunct for-profit chain Corinthian College will have their loan debt erased by the federal government. While the $103 million tab sounds like a lot, it’s only a fraction of the billions of dollars that Wyotech, Heald College and Everest University charged in tuition.  [More]

(bluwmongoose)

Corinthian College’s Misleading Job-Placement Info Could Result In Faster Debt Relief For Students

Thousands of students affected by the abrupt closure of for-profit college educator Corinthian Colleges’ Wyotech, Heald College and Everest University campuses could soon have more options when it comes to receiving debt relief after a joint investigation by the California Attorney General’s office and the Department of Education found additional evidence that the schools misrepresented job placement rates for several programs in order to enroll students.  [More]

(EDMC on Linkedin)

UPDATE: For-Profit Education Company EDMC Agrees To Pay $95.5M To Settle Fraud, Recruitment Violations

UPDATE: Education Management Corporation, the operator of for-profit college chains such as Brown Mackie College, Argosy University and the Art Institutes, will pay $95.5 million to settle claims it violated state and federal False Claims Act (FCA) provisions regarding its recruiting practices.  [More]

New Campus Banking Rules Hope To Protect Students From High Prepaid & Debit Card Fees

New Campus Banking Rules Hope To Protect Students From High Prepaid & Debit Card Fees

Back in May, the Department of Education proposed rules to govern college prepaid and debit cards in order to afford students proper protections from excess fees and other harmful practices. Fast forward five months, and those rules have are now finalized.  [More]

(George)

Conflicts In Patient Privacy Laws Often Leave Student Health Records Vulnerable

When a college student seeks medical treatment at a campus healthcare facility, they probably expect they will be afforded the same discretion as all consumer are under HIPAA (the Health Insurance Portability and Accountability Act). But thanks to a separate, often conflicting federal law, that isn’t always the case. [More]

More Trouble For ITT Education Services: Agency Restricts For-Profit’s Use Of Federal Student Aid

More Trouble For ITT Education Services: Agency Restricts For-Profit’s Use Of Federal Student Aid

Just a month after for-profit college operator ITT Education Services announced it had become the focus of a federal fraud investigation, the Department of Education revealed it had placed restrictions on ITT Technical Institute’s use of federal grants and loans.  [More]

(Great Beyond)

Federal Perkins Student Loan Program Set To Expire At Midnight

After 57 years of assisting nearly 20 million low-income students to finance their dreams of obtaining a higher education, the Federal Perkins Loan program could soon be grinding to a halt.  [More]

Feds Recommend Overhaul Of Student Loan Servicing

Feds Recommend Overhaul Of Student Loan Servicing

Earlier this year, the Consumer Financial Protection Bureau launched a public probe into potentially anti-consumer practices of the student loan servicing industry. More than 30,000 people responded, leading the Bureau, along with the Departments of Education and Treasury, to release a framework they hope will curb these questionable practices, promote borrower success, and minimize defaults. [More]

ITT Educational Services Target Of Federal Fraud Investigation

ITT Educational Services Target Of Federal Fraud Investigation

Things don’t appear to have gotten better for for-profit college operator ITT Educational Services since it announced in September 2014 that it was under increased scrutiny from federal regulators, as the owner of the ITT Technical Institute chain revealed on Monday that the Department of Justice is looking into whether the company defrauded the federal government. [More]

College-Bound Students Can Fill Out Their FAFSA Forms 3 Months Earlier Starting Next Year

College-Bound Students Can Fill Out Their FAFSA Forms 3 Months Earlier Starting Next Year

Each year Consumerist reminds college-bound students and their families that billions of dollars in college aid will go unclaimed because so many people won’t take the time to fill out a Free Application for Federal Student Aid [FAFSA] form. But a new initiative by the Department of Education aims to change that by revamping the application process: starting it earlier and making it easier to fill out. [More]