For-profit colleges under scrutiny as students default on loans

U.S. Education Secretary Betsy DeVos recently rolled back several Obama-era initiatives that would increase protections for student loan borrowers and curtail loan servicer misconduct. The initiatives were the result of three memos issued by the Obama administration to reform debt repayment. They involved creating a single platform system for loan repayment and banning collection fees for defaulted borrowers. DeVos rescinded the memos on April 11, explaining that the reform process “has been subjected to a myriad of moving deadlines, changing requirements and a lack of consistent objectives.” In response, 22…

Read More

How A ‘Coding Error’ By Obama’s Department Of Education Hurt For-Profit Colleges

At the time, the DOE billed the College Scorecard as “the clearest, most accessible, and reliable national data on college cost, graduation, debt, and post-college earnings.” The site compiled data on more than 7,000 schools over a period of 18 years and supplemented information reported by the various schools with tax records and Treasury department statistics to help users distinguish schools on the economic outcomes of graduates. “Americans will now have access to reliable data on every institution of higher education,” said President Obama as he introduced the scorecard during…

Read More

For-Profit Law School Is Cut Off From Federal Student Loans

The troubles buffeting the nation’s law schools may be on the verge of claiming their first victim. The federal Department of Education told students of the Charlotte School of Law in North Carolina this week that federal student loans — the financial lifeblood for law schools — would not be available. The for-profit school is the first accredited law school to lose access to federal student loans. The Charlotte School said on Thursday that it still planned to open its doors on Monday for spring semester classes. The federal agency…

Read More

For-profit college DeVry to forgive $30 million in student loans

DeVry Education Group DV, +0.47% the operator of a chain of for-profit colleges, will forgive $30.35 million in student loans over claims the company misled prospective students about their ability to get jobs after graduation. The loan forgiveness, which covers all unpaid student loans made through DeVry between Sept. 1, 2008 and Sept. 30, 2015, is part of a larger settlement with the Federal Trade Commission totaling $100 million. The deal doesn’t include any federal student loans made to students who attended the school during the period of the lawsuit.…

Read More