department of education


Student Loan Debt Collectors Not Eager To Charge Fees Reinstated By Trump Administration

The Department of Education recently advised companies that collect debt on billions of dollars in outstanding federal student loans that they can once again charge a large penalty fee to defaulted borrowers. However, the collectors — even one that is currently suing the government for the right to charge this fee — now say they will not automatically add thousands of dollars in additional debt to loans in default.  [More]

Former Lobbyist, Son Of Student Loan Debt-Collector, Resigns From Dept. Of Education

Former Lobbyist, Son Of Student Loan Debt-Collector, Resigns From Dept. Of Education

In our recent story on the Trump administration’s decision to roll back protections for potentially millions of student loan borrowers, we also told you about new Department of Education advisor Taylor Hansen, a former lobbyist for the for-profit college industry whose father is the CEO of a student loan debt collection company that has been suing Taylor’s new employer since 2015 for the right to charge thousands of dollars in fees to people who are already having trouble paying back their loans. Now comes news that Hansen’s brief life as a federal employee has come to an end. [More]


Trump Administration Eases Restriction On Student Loan Debt Collectors

The Department of Education has told federal student loan debt collectors that they are to ignore previous guidance that restricted the fees they could charge to borrowers who defaulted on their loans — even if they immediately enter into repayment programs. [More]


18 Attorneys General Ask Education Secretary DeVos To Not Go Soft On For-Profit Colleges

A number of high-profile for-profit educators shut down or scaled back operations in recent years, among accusations of overcharging and under-educating students, and new rules intended to hold schools accountable. However, these companies’ fortunes began to turn after the election of Donald Trump and his naming of pro-industry Education Secretary Betsy DeVos. That’s why a group of 18 state attorneys general is calling on the administration to not ease up on these controversial schools. [More]

(Sapurah Lashari)

Feds Will Forgive $30M In Federal Loans For Students Of Defunct American Career Institute

Under the “Borrower Defense” program, a student’s federal education loans can be forgiven if they can prove their college used deceptive practices to convince them to enroll. The Department of Education confirmed today that this program will be used to forgive $30 million in federal student loans for thousands of former students from the defunct American Career Institute. [More]


Lawsuit: Government Illegally Garnishes Disability Benefits To Repay Student Loans

Earlier this month, a Government Accountability Office report found that $171 million was garnished from older Americans’ Social Security benefits in order to repay federal student loan debts. Now, one of those borrowers is suing several government agencies accusing them of taking money from his monthly disability checks despite the fact he was eligible for a student loan discharge.  [More]

Hammerin Man

Many For-Profit Colleges Get More Than 90% Of Funding From Federal Government

For-profit colleges operate under the so-called “90/10 Rule,” which states that a school can’t receive more than 90% of its revenue from the federal government. However, there’s a loophole that does not count certain military-related education funds — like the GI Bill — against that 90%, meaning these schools can go over that 90% threshold without violating the 90/10 Rule. And according to a new report, hundreds of for-profit schools are indeed getting nearly every dollar of their funding from taxpayers. [More]

Tim schreier

Student Loan Repayment Programs Will Eventually Forgive $108B In Debt

While several recent reports have suggested that many student loan borrowers face needless hurdles when trying to reduce their monthly payments through the Department of Education’s income-driven repayment plans, a new study has found the programs are working and will eventually forgive $108 billion in outstanding student debt.  [More]


Some Student Loan Borrowers Improperly Denied Payment Assistance

Each year, more than five million student loan borrowers are better able to manage their debts thanks in part to government-based loan repayment plans. But yet another report has found that not all students qualified to participate in these income-driven repayment plans are able to, though at no fault of their own.  [More]


New Rules Aim To Make It Easier For Students To Seek Financial, Legal Relief From Failed Colleges

In the last few years, multiple for-profit college chains have closed with little or no warning given to their students, while others remain on the brink of closure. And many of the for-profit schools that remain bar wronged students from ever suing the college in a court of law. Today, the Department of Education finalized the massive overhaul of its “Borrower Defense” rules in an effort to make it easier for students to hold colleges financially and legally responsible for their actions. [More]

DeVry University Must Stop Claiming That 90% Of Grads Get Jobs

DeVry University Must Stop Claiming That 90% Of Grads Get Jobs

Many for-profit college chains recruited students through ads touting exceedingly high job-placement rates, but as we’ve seen from the recent collapses of chains like Corinthian Colleges Inc. and ITT Tech, those placement statistics can be artificially inflated. This week, for-profit educator DeVry Education Group agreed to be more honest and transparent about the job-placement claims in its ads and recruitment materials. [More]

Eric Gjerde

If You Plan To Go To College Next Year, Fill Out Your FAFSA This Weekend

Each year high school graduates preparing for college leave billions of dollars on the table by failing to fill out a Free Application for Federal Student Aid (FAFSA). A new initiative by the Department of Education aims to change that this year, by starting the process earlier and making it easier to fill out. So here’s your warning: FAFSA season starts Saturday.  [More]

Hammerin Man

Veterans Who Attended Shuttered ITT Tech Schools Still Waiting For Financial Assistance

Shortly after ITT Educational Services announced it would close all of its ITT Technical campuses across the country, the Department of Education swooped in to try to placate students’ concerns by announcing that it would forgive currently or recently enrolled students’ federal student loans. While the process to wipe out that debt will no doubt be complicated and take time, former students who used veteran benefits — like the GI Bill — will likely be waiting longer and have more hurdles to jump through.  [More]

(D. Michelson)

Student Loan Default Rates Decline, But A Record Number Of Borrowers Are In Default

While the number of borrowers defaulting on their federal student loans didn’t increase this year, the number of consumers who remain in default hasn’t really change either, creating a stand-still of sorts.  [More]


Education Dept. Revokes Recognition Of Troubled Accreditor Of For-Profit Colleges

The accrediting body responsible for holding a large number of for-profit schools accountable — including the recently shuttered ITT Tech, and the now-bankrupt Corinthian Colleges — received some bad news this week. The U.S. Department of Education has terminated its federal recognition.  [More]

Dept. Of Education Offers Online Service For Students Stranded By ITT Shutdown

Dept. Of Education Offers Online Service For Students Stranded By ITT Shutdown

Thousands of students affected by the abrupt shutdown of all 130 ITT Tech campuses received a lifeline of sorts from the government this week, as it unveiled additional resources to help displaced students understand their new reality and to continue their education or receive federal loan discharges. [More]


ITT Tech Students: Don’t Pay For Loan Consolidation, Discharge, Or Transfer Help

They say one person’s misfortune is another’s gain, but the Department of Education doesn’t want that to be the case for tens of thousands of students affected by ITT Educational Services’ closure of 130 ITT Technical Institute campuses, no matter how good the deal sounds. [More]

Loan Discharges, Transferring Credits: What ITT Tech Students Need To Know

Loan Discharges, Transferring Credits: What ITT Tech Students Need To Know

Nearly 40,000 now-former ITT Technical Institute students are now left picking up the pieces after the for-profit college operator abruptly closed all 130 of its campuses this week. The Department of Education wants to help those students to be aware of all options — and to avoid getting pulled in by shady offers that are too good to be true.