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 Student help seminar a week ago, three of us sat down at a late-add session on a brand new and unprecedented test the Department is likely to implement, because of the reported aim of increasing “institutional investment in pupil success. ” The presentation offered some insight that is long-sought a astonishing statement about feasible federal funding for income-share agreements created by a high-ranking Department official at a conference previously this year. Together with brand new information unveiled throughout the session proved concerning: the Department intends to oversee a perversion of this federal loan system in which, really, federal loan dollars is going to be utilized to fund private training loans. Naturally, this announcement raised huge concerns.

Simply speaking, the test allows chosen institutions to skirt two loan that is federal. The very first of the legislation permits universities to reject or decrease the amount a particular pupil can borrow secured on a case-by-case foundation, with documents. Read More