Author: Drew Cloud

Contrary to Early Reports, the PROSPER Act Increases Higher Education Spending

In late 2017, House Republicans released a bill aimed at reauthorizing the Higher Education Act. Known as the Prosper Act, the bill makes substantial changes to student loan programs and loosens restrictions on for-profit colleges. And last week, the nonpartisan Congressional Budget Office released its official score of the bill.Initial reports on the CBO score stated that the bill will decrease spending to federal student aid by $14.6 billion over the next 10 years. Republicans seized on this information, claiming it demonstrates that the bill is “fiscally responsible.” Meanwhile, Democrats and higher education advocates used this score to criticize...

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FTC Files Lawsuit in Alleged Student Debt Relief Scam Targeting Student Borrowers

The Federal Trade Commission filed a lawsuit Feb. 9, 2017, against three interrelated student loan debt relief companies for allegedly violating Section 5 of the FTC Act and the Telemarketing Sales Rule.The FTC issued a press release saying that the defendants illegally charged thousands of consumers more than $28 million. The defendants also falsely promoted that these monthly payments would be applied to their student loans, according to the FTC’s complaint.The FTC claimed the defendants sent consumers mailers telling them they qualified for a federal program that would either minimize their monthly payments or provide total loan forgiveness. According...

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FSA Prepaid Card Proposal for Student Loan Funding Faces Criticism

Recent criticism of the proposed student aid prepaid card from the Office of Federal Student Aid raised questions about the FSA mandate and possible overreach in the student loan market. The federal student aid administrator hopes to “reshape” its services to improve the experiences of students and limit abuse of the student loan system; however, consumer advocates are worried about some of the finer points in the proposed changes to the FSA’s programs.Using prepaid cards to distribute student aid is a troubling development according to Justin Draeger, CEO/President of the National Association of Student Financial Aid Administrators. “It does...

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Private Colleges Where Students Win the Most Scholarship Money

Private colleges set the bar high when it comes to their academic standards and chances of admission, making them an ideal destination for many aspiring college students. While private colleges are known for their qualitative standards, they are also known for the quantitative as well, meaning they charge a pricey tuition.Needless to say, the typical student who gets admitted into a private university is expected to shell out a ton of cash; therefore, you can expect the typical private school student to take out student loans to foot the bill. Whoever is up-to-date with trending higher education topics must...

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Public Colleges Where Students Earn the Most Scholarship Funding

If you’re talking about college, there’s a good chance that you’ll at least touch on a major talking point such as the cost of tuition or overall cost of attendance. And at that, there’s an even better chance that student loans will be brought as well.With that being said, it becomes commonplace to list out the usual statistics: $1.41 trillion debt toll, over 40 million borrowers, and a default rate pushing 11 percent. These statistics tell the same story that everyone is used to hearing: college is expensive and college students are getting saddled with debt.What people don’t talk...

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