Posts by Lindsey Withem

When colleges defraud students, should the government go after school executives? | NPR

In a shocking investigation, the U.S. Senate declared the federal student loan program “plagued by fraud and abuse.” Its report heaped scorn on for-profit trade schools for serving 22% of federal student loan borrowers but accounting for 44% of defaults. “The school keeps the student aid money … and the student is left holding the bag with a poor credit rating, no job and no income to repay the student loan,” U.S. Rep. Marge Roukema, R-N.J., declaimed in her crusade against for-profit “bad apples.”

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Report On Fraud Committed By ITT Technical Institute Highlights Need To Protect Student Loan Borrowers With Stronger Regulation Of For-Profit Colleges | Forbes

Last week the Project on Predatory Lending released an extensive report detailing abuses by the now-closed ITT Technical Institute (ITT Tech). The report details how ITT Tech systematically defrauded millions of students over decades, abused the federal financial aid system and left students weighed down with student loan debt and worthless credentials.

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Department of Education to cancel $415 million in student loan debt | MarketWatch

Roughly 16,000 borrowers who were scammed by their schools will have their federal student loans discharged, resulting in $415 million in relief, the Department of Education announced Wednesday. The borrowers receiving relief attended four for-profit colleges that the agency found misled students in the process of luring them into enrolling and taking on debt to pay for school.

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DeVry University misled students. Now, the federal government is erasing their debt | NPR

Nearly 16,000 federal student loan borrowers who were misled by for-profit colleges will have $415 million in debts erased, according to the U.S. Department of Education. These borrowers — who attended DeVry University, ITT Technical Institute and other schools — will receive relief through a legal provision known as borrower defense, which promises loan relief for defrauded borrowers.

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Biden Administration Approves $415 Million In New Student Loan Forgiveness Under Troubled Program: Key Details | Forbes

The U.S. Department of Education on Wednesday announced that it had approved $415 million in new student loan forgiveness for borrowers defrauded by their schools. “The Department remains committed to giving borrowers discharges when the evidence shows their college violated the law and standards,” said U.S. Secretary of Education Miguel Cardona in a statement. “Students count on their colleges to be truthful. Unfortunately, today’s findings show too many instances in which students were misled into loans at institutions or programs that could not deliver what they’d promised.”

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