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Shaky Colleges Get Help on Bad Loans --- U.S. officials tell schools how to clean up data, keep access to federal aid

Fuller, Andrea ; Mitchell, Josh

Wall Street Journal, Dec 22, 2015, p.A.1

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  • Title:
    Shaky Colleges Get Help on Bad Loans --- U.S. officials tell schools how to clean up data, keep access to federal aid
  • Author/Creator: Fuller, Andrea ; Mitchell, Josh
  • Language: English
  • Subjects: Arkansas ; Colleges & Universities ; Student Loans ; Default ; Arkansas Baptist College ; Department of Education
  • Is Part Of: Wall Street Journal, Dec 22, 2015, p.A.1
  • Description: Borrowers are allowed to delay payments under some circumstances, such as illness or unemployment, though the interest owed on their loans keeps accumulating. Since October 2001, just 17 educational institutions -- all of them trade schools -- out of a total of about 6,000 failed to meet loan-default requirements and then were banned from getting federal aid, the Education Department says. [...]colleges learned how to massage their official loan-default statistics by encouraging former students to suspend their payments, according to government researchers. Because the federal government tracked loan defaults only in the first two years after students left school, colleges weren't hurt when borrowers postponed payments beyond two years and then walked away from their loans.
  • Identifier: ISSN: 00999660