Financial Aid

Career College Central Summary:

  • The U.S. Department of Education on Friday announced changes to how it pays the companies that manage student loan payments, responding to growing criticism that its oversight of those companies is inadequate.
  • Officials have renegotiated the government’s contracts with the four main loan servicers, which together collect payments for tens of millions of federal student loan borrowers.
  • The servicers will now also...

Career College Central Summary:

  • Last week Corinthian sold a set of student loans for approximately $19 million to an unnamed third party.
  • The very next day, the company met with attorneys for the Consumer Financial Protection Bureau.
  • Now the CFPB has accused Corinthian of violating both the Dodd-Frank Act and the Fair Debt Collections Practices Act, the company said in the filing.
  • The agency is willing to enter settlement talks, according...

Career College Central Summary:

  • A new report has cast a bad light on the GI bill funding, and Senator Chris Murphy wants to make a change.
  • The GI bill provides veterans with nearly $20,000 a year to pursue an education.
  • But a report by the Senate committee on Health, Education, Labor, and Pensions found that some for profit colleges are abusing the bill.
  • Sen. Murphy says a lack of oversight allows the colleges to collect GI money with poor...

Career College Central Summary:

  • People with student debt report worse health and greater financial stress long after they finish their degree, a new study from Gallup shows.
  • The survey looked at 11,000 students who have graduated college since 1990 and found that people who took out more than $50,000 in loans rate their physical and financial status at least 10 points lower than their debt-free peers.
  • The findings offer a window into the deeply...

Career College Central Summary:

  • For-profit college ITT Educational Services Inc. (ESI:US), already under pressure from the U.S. Education Department, is facing stricter terms from lenders that could put its operations at risk.
  • Last week, ITT Educational disclosed an agreement with creditors that would push its loans into default should the government delay access to student-aid funds, the lifeblood of for-profit colleges, by more than five days. On Aug. 4, the...