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]
department of education
More Trouble For ITT Education Services: Agency Restricts For-Profit’s Use Of Federal Student Aid
By 10.20.15
Federal Perkins Student Loan Program Set To Expire At Midnight
By 9.30.15
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
By 9.29.15
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
By 9.22.15
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
By 9.14.15
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]
For-Profit Colleges Lead The Way On Loan Defaults: Report
By 9.11.15
During the Great Recession, the growing industry of for-profit colleges promised millions of Americans a path to a higher education. But the high tuitions charged by many schools sent U.S. student loan debt soaring to more than $1.2 trillion. A new report claims that while for-profit schools charged top-dollar, many students were getting a cut-rate education, making it difficult to obtain jobs that will allow them to pay down this debt.
[More]
Corinthian Students Continue To Wait For Debt Relief As Department Of Ed. Reviews More Than 7,800 Claims
By 9.4.15
The tens of thousands of students seeking debt relief from the federal government after for-profit education chain Corinthian Colleges Inc. closed its Everest University, WyoTech and Heald College campuses, will have to wait a little longer, the Department of Education said Thursday as it provided an update on the number of federal student loans it has discharged and that are currently under consideration. [More]
Sallie Mae Spinoff Navient Could Face CFPB Lawsuit Over Student Loans
By 8.25.15
In the short time since Navient – the nation’s largest student loan servicing company – spun off from Sallie Mae, the company has come under scrutiny for it allegedly unfair practices of overcharging and imposing excessive fees on consumers’ loans. While those practices resulted in a $97 million settlement with the Depts. of Education and Justice, and the Federal Deposit Insurance Corp, they could soon lead to a lawsuit from the Consumer Financial Protection Bureau. [More]
Dept. Of Education Plans To Overhaul Loan Forgiveness Program For Students Defrauded By Schools
By 8.20.15
As thousands of former Corinthian College students continue to wait to learn whether or not they’re on the hook to repay billions of dollars in student loans they took out to attend the now defunct for-profit college, the Department of Education announced plans to overhaul the loan forgiveness process for students who believe they have been defrauded by their colleges. [More]
Groups Say Proposed Student Loan Plan Doesn’t Provide Enough Assistance
By 8.10.15
The Dept. of Education recently proposed regulations intended to make the student loan repayment process less burdensome and drawn-out. Nearly two dozen consumer advocacy groups say that while these rules should help borrowers, more could be done to ensure that all students benefit. [More]
Why Didn’t Dept. Of Education Find Problems With Loan Servicer Fined $100M?
By 8.5.15
Last May, investigations by the Department of Justice and the Federal Deposit Insurance Corporation into student loans servicing resulted in a $100 million fine against government-contracted servicer Navient for allegedly violating federal laws limiting the amount of interest that can be charged on servicemember student loans. Following those investigations, the Department of Education undertook a review that found its four servicers – including Navient – weren’t cheating military personnel. With such conflicting reports, members of Congress are now getting involved, calling for an investigation into the Dept. of Education’s review process. [More]
When Comparing Colleges, It Would Help To Know If A School Is Under Investigation
By 7.22.15
Many consumers thinking of pursuing a higher education weigh the pros and the cons of a specific college: tuition, convenience, available areas of study. Last month, the Department of Education announced it would make the college shopping experience a little easier for prospective students by creating a consumer-facing online college comparison system. While the tool will no doubt be helpful, consumer advocates warn that, as it stands, the system will be missing a vital information: whether or not schools are party to investigation, lawsuits or settlements over harmful and deceptive practices. [More]
Gainful Employment Rules Survive Another Hurdle, Judge Strikes Down For-Profit College Industry Lawsuit
By 6.24.15
Gainful employment rule: 2, for-profit education industry groups: 0. A federal judge struck down a second lawsuit to block new regulations aimed at reining in for-profit colleges set to take effect in just one week. [More]
Congress Takes Another Stab At Undercutting Gainful Employment Rules Two Weeks Before Implementation
By 6.17.15
The Department of Education’s long-awaited gainful employment rules – aimed at reining in the for-profit college industry – go into effect on July 1. But just because there are only 14 days before implementation, doesn’t mean those opposed to the regulations are giving up their fight. [More]
Judge Upholds Gainful Employment Rule, Throws Out For-Profit Industry Lawsuit
By 5.27.15
The Department of Education’s gainful employment rules, aimed at reigning in the for-profit college industry, came one step closer to its July implementation today as a judge threw out a for-profit industry lawsuit that attempted to further weaken the upcoming law. [More]
Dept. Of Education Proposes Rules To Govern College Prepaid Credit & Debit Cards
By 5.15.15
College students’ federal aid has increasingly been put at risk by the cozy relationship between institutions of higher education and credit card issuers over the years. While consumer advocates and legislators have debated whether or not products like student IDs that double as credit or debit cards provide an actual benefit to students or if they’re just a way for schools and banks to rake in the big bucks, the Department of Education finally took steps today to ensure students are afforded proper protections from excess fees and other harmful practices with the proposal of regulations targeting the college debit and prepaid card marketplace. [More]
Legislator Demands Department Of Education Investigate For-Profit Chain ITT Technical Institute
By 5.15.15
Following the Securities and Exchange Commission’s decision earlier this week to file fraud charges against current and former executives with ITT Education Services – the operator of for-profit college chain ITT Technical Institute – for their part in concealing problems with company-run student loan programs, one legislator is calling on the Department of Education to further investigate the company. [More]
Attorneys General Coalition Urges Dept. Of Education To Clarify Corinthian Students’ Options
By 5.13.15
A week after nine senators urged the Department of Education to provide support to the thousands of students affected by the closure of now-bankrupt Corinthian Colleges schools — Everest University, Heald College, and WyoTech — the top prosecutors in 11 states are adding their voices to the chorus encouraging the Dept. to protect students and clarity their options following the company’s final downfall. [More]
