During the Education Department’s Federal scholar help seminar the other day, three of us sat straight down at a late-add session on an innovative new and unprecedented experiment the Department is about to implement, using the stated goal of increasing “institutional investment in student success. ” The presentation offered some insight that is long-sought a surprising statement about feasible federal funding for income-share agreements made by a high-ranking Department official at a conference early in the day this year. Plus the brand new information unveiled throughout the session proved concerning: the Department intends to oversee a perversion regarding the federal loan system by which, really, federal loan bucks will undoubtedly be used to finance private training loans. Obviously, this announcement raised questions that are huge.
Simply speaking, the test will allow chosen organizations to skirt two loan that is federal. The very first of those regulations enables colleges to reject or decrease the quantity a student that is specific borrow against a case-by-case foundation, with documentation. The test allows participating schools broader authority to rather reduce steadily the number of federal loans available by whole sets of pupils in the past, such as for instance by system kind. Continue reading “Education Department Proposes to Repurpose Federal Student Education Loans as Private Loans”