Education Department Proposes to Repurpose Federal Student Loans as Private Loans

Education Department Proposes to Repurpose Federal Student Loans as Private Loans

In the Education Department’s Federal scholar help seminar a week ago, three of us sat straight down at a late-add session on a unique and unprecedented test the Department is intending to implement, because of the stated goal of increasing “institutional investment in student success. ” The presentation offered some long-sought insight into a astonishing statement about possible federal funding for income-share agreements created by a high-ranking Department official at an event earlier in the day this year. Together with new information unveiled throughout the session proved concerning: the Department intends to oversee a perversion associated with the federal loan program for which, basically, federal loan bucks are going to be utilized to finance personal training loans. Obviously, this announcement raised questions that are huge.

In a nutshell, the experiment enables chosen institutions to skirt two federal loan laws and regulations. The initial of those rules allows universities to reject or reduce steadily the quantity a specific pupil can borrow against a case-by-case foundation, with paperwork. Continue reading “Education Department Proposes to Repurpose Federal Student Loans as Private Loans”