Nearly 41,000 former students of now-defunct for-profit educator Corinthian Colleges will soon receive refunds for the private student loans they received to attend college, after a coalition of state attorneys general and federal agencies reached a $183.3 million settlement with Aequitas Capital Management, the issuer of these loans. [More]
Education
Education Secretary Betsy DeVos Will Allow For-Profit Schools To Continue Offering Programs That Don’t Meet Standards
By 8.17.17
Earlier this year, Education Secretary Betsy DeVos revealed plans to “reset” the Gainful Employment rule meant to hold for-profit colleges more accountable for the education they provide students. Today, she continued tearing apart the rule, announcing the intention to allow colleges to continue enrolling students in programs that run afoul of the regulation. [More]
Huge Collection Fees Making It More Difficult For Cash-Strapped Students To Afford College
By 8.7.17
Each year, millions of college students rack up student loans that won’t come due until they leave school. But even with financial aid, some students have trouble keeping up with the soaring costs of tuition, and once that debt ends up in the hands of a collection agency, the amount can mushroom out of control while the student is still in school. [More]
Dept. Of Education Hasn’t Approved A Loan Forgiveness Claim In Six Months
By 7.27.17
When Education Secretary Betsy DeVos hit “reset” on revamped Borrower Defense rules that aim to ensure students at troubled schools weren’t left with nothing but debt if their college collapsed, she noted that students who had already submitted claims for loan forgiveness wouldn’t be affected. But that doesn’t appear to be the case, as the Dept. hasn’t approved a single application in nearly six months. [More]
From Forbearance To Garnishments: 5 Things We Learned About Student Loan Debt Collection
By 7.25.17
Student loans are big business, both for private lenders and the federal government. And with $1.4 trillion dollars in education debt outstanding, it should come as no surprise that these companies and the government would want to recoup these costs. However, that often comes at a cost to borrowers, from those who have fallen on hard times, to those failing to receive proper notice and options from servicers, or those who believe they were defrauded by the educators who promised them a better life. [More]
Everest College Changes Name To Altierus Two Years After Turning Nonprofit
By 7.20.17
More than two years after Education Credit Management Corporation swooped in to purchase 56 Everest and WyoTech campuses previously owned by defunct for-profit college chain Corinthian Colleges, the company has finally changed the remaining schools’ names in a belated attempt to shed the stigma associated with the for-profit chains. [More]
Student Loan Company With Allegedly Shoddy Recordkeeping Under Investigation
By 7.20.17
New York Attorney General Eric Schneiderman’s office has opened an inquiry into the business practices of National Collegiate Student Loan Trust following reports that the company often files collection lawsuits against defaulted borrowers without proper or correct paper. [More]
Lawmakers Call For Removal Of Education Dept. Civil Rights Chief After College Rape Claims
By 7.19.17
A week after the head of the Department of Education’s Civil Rights division publicly apologized for making an unsubstantiated and unsourced claim that nine in 10 sexual assault and harassment allegations are baseless and can be tied back to nothing more than too much drinking and bad breakups, lawmakers are calling for the her removal. [More]
$5 Billion In Private Student Loans Could Be Wiped Away Because Of Shoddy Record Keeping
By 7.18.17
Wiping away private student loans is a difficult, almost impossible task, for borrowers. But some debtors are finding their tabs zeroed out as the result of a long-running legal battle between former students and a group of student loan creditors attempting to collect on defaulted loans. In the end, the courts could forgive up to $5 billion in private education loans if the creditor continues to fail in providing critical paperwork. [More]
Proposed Spending Bill Would Cut Pell Grant Program By $3.3 Billion
By 7.13.17
The Federal Pell Grant Program provides need-based grants to low-income students to help pay for college, but these students could soon have a more difficult time obtaining the financial assistance as a new legislative measure aims to cut funding for the program. [More]
Education Dept. Civil Rights Chief Sorry For Saying 90% Of College Rape Claims Are Result Of Bad Breakups
By 7.12.17
As Education Secretary Betsy DeVos moves forward with her plan to review the federal government’s policy regarding sexual assault and harassment on college campuses, the acting head of the Department’s Civil Rights division is now apologizing for making an unsubstantiated and unsourced claim that nine in ten of these assault allegations are baseless and can be tied back to nothing more than too much drinking and bad breakups. [More]
Dozens Of Organizations Come Out In Support Of Gainful Employment, Borrower Defense Rules
By 7.12.17
A week after two separate lawsuits were filed by 19 state attorneys general and a group representing students accusing Education Secretary Betsy DeVos of breaking the law by delaying protections for student loan borrowers, a coalition of more than 50 consumer groups have stepped forward to join the opposition against a “reset” of regulations put in place to protect students at for-profit colleges. [More]
Some Schools Don’t Let Kids Bring Sunscreen, But That’s Starting To Change
By 7.11.17
It’s a hot, sunny day. Your progeny is going on a fieldtrip to a literal field, where she will likely find little shade. Can you throw a bottle of sunscreen in her backpack with strict instructions to slather it on? That depends on where you live. [More]
States Say Education Secretary Betsy DeVos Broke Law By Delaying Protections For Student Loan Borrowers
By 7.6.17
Following Education Secretary Betsy DeVos’ decision to “reset” new regulations put in place to protect students at for-profit colleges, two separate lawsuits now accuse the Secretary of breaking federal law by running roughshod over the regulatory process when she delayed the so-called Borrower Defense rule, which would have made it easier for defrauded students to get out from under their student loan burdens. [More]
Student Loan Borrowers Face Delays, Bad Information About Loan Forgiveness Program
By 6.22.17
The Department of Education’s Public Service Loan Forgiveness program allows student borrowers a way to eventually erase federal student loan debt by working for the government or at a non-profit for 10 years. Students have already accused the government of failing to keep its promise, and a new report not only appears to bolster this claim but shines a light on other concerns about other roadblocks to loan forgiveness. [More]
Betsy DeVos To Put $1.3 Trillion Student Aid Office In Hands Of Exec From For-Profit Student Loan Company
By 6.21.17
The top official at the federal Office of Financial Aid recently resigned after butting heads with new Education Secretary Betsy DeVos and her plan to make sweeping changes to federal student loan programs. Now DeVos has announced a replacement who is more likely to follow her lead: Dr. A. Wayne Johnson, the CEO of a private, for-profit student loan company. [More]
With DeVos Unwilling To Defend Rules, States Try To Protect Students Defrauded By For-Profit Colleges
By 6.14.17
Education Secretary Betsy DeVos has made it clear that she has no intention to defend regulations put in place to protect students at failed for-profit colleges. But a number of states are now attempting to step in to do the job the Department of Education won’t. [More]
Education Secretary Betsy DeVos “Resets” Rules On For-Profit Colleges
By 6.14.17
Education Secretary Betsy DeVos has announced plans to “reset” two regulations that were recently put in place to hold for-profit colleges more accountable and prevent students at these schools from being left with nothing but debt if their college collapses. [More]
