Posted on Mar 1, 2022
When colleges defraud students, should the government go after school executives?
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https://www.npr.org/2022/03/01/ [login to see] /for-profit-colleges-student-loan-borrowers-fraud
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."
Sound familiar?
This clamor for accountability erupted back in 1991, more than two decades before the epic collapses of Corinthian Colleges and ITT Technical Institute cost students and taxpayers millions of dollars in wasted loans and worthless degrees. More recently, in February, the U.S. Department of Education announced it would erase more than $70 million in student loans for former DeVry University students who had been misled by the school's false advertising.
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."
Sound familiar?
This clamor for accountability erupted back in 1991, more than two decades before the epic collapses of Corinthian Colleges and ITT Technical Institute cost students and taxpayers millions of dollars in wasted loans and worthless degrees. More recently, in February, the U.S. Department of Education announced it would erase more than $70 million in student loans for former DeVry University students who had been misled by the school's false advertising.
When colleges defraud students, should the government go after school executives?
Posted from npr.org
Government
United States Senate
Fraud
College
Loans
Posted 2 y ago
Responses: 6
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This is why it is so important to understand accreditation. Not all schools are created equal and not all accreditations are created equal. With a regionally accredited school you will be getting a degree that will be recognized.
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PO1 William "Chip" Nagel
...""Any executive from a college that closes precipitously should be financially liable for damage done to students and taxpayers. The U.S. Department of Education should take back money paid to school executives in salary or bonuses and instead use it to cover the cost of loan forgiveness and refund tuition paid by students."...
...""Any executive from a college that closes precipitously should be financially liable for damage done to students and taxpayers. The U.S. Department of Education should take back money paid to school executives in salary or bonuses and instead use it to cover the cost of loan forgiveness and refund tuition paid by students."...
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