Author: Jamie Johnson

GE Data Paints an Incomplete Picture of For-Profit Schools

New data was just released on the earnings of college graduates from career college programs. This is part of the Department of Education’s “gainful employment” (GE) rule that went into effect last year. It requires colleges receiving federal funds to demonstrate that their students earning certificates have high incomes in relation to the student loan debt they have accumulated. The GE rule applies to both public and private colleges. The press release from the Department of Education showed that there is a $9,000 average earnings gap between students who completed certificates from public and for-profit colleges. The Department released...

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Borrower Defense Rule Vulnerable under a Trump Presidency

Beginning as soon as January, Congress could begin to undo the work the Obama Administration has put into reforming student loan regulations. Many of these regulations were designed to streamline the student loan forgiveness process for students who attended for-profit colleges and claim to have been defrauded. These measures provide loan forgiveness options for students and were released by the Department of Education just days before the election. Because they are so recent, the new Congress would have the ability to disapprove them under a 1996 law known as the Congressional Review Act, which allows Congress 60 legislative days...

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Study Finds Leaving College With Loans Impacts Wealth Building

A study recently published in the journal Children and Youth Services Review revealed that student loan debt can negatively impact a borrower’s ability to gain assets after leaving college. After leaving school, either by dropping out or graduating, people with unpaid student loan debt on average have a lower net worth and fewer financial assets at the age of 30. Min Zhan is a professor of social work at the University of Illinois and the principal investigator in the study. She says that the results of this study highlight the need for access to different ways of paying for...

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Department of Education Releases New Guidelines to Increase Access to Higher Education

Experts agree that earning a college degree is well worth the investment as the average person who earns their bachelor’s degree will earn $1 million more than someone without a college education. They are less likely to default on their loans and are at a lower risk for unemployment. Giving all Americans the opportunity to earn their degree is critical to the success of our country, as two-thirds of all jobs will require a degree by the year 2020. For this reason, the Department of Education recently issued a press release explaining new guidelines issued by the Department aimed...

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CFPB Student Loan Ombudsman Releases 5th Annual Report

The CFPB’s student loan ombudsman, Seth Frotman, just released the Annual Report of the CFPB Student Loan Ombudsman which looks at complaints the CFPB has received regarding federal and private student loans. This report looks at the 5,500 loan complaints and 2,300 debt collection complaints received and analyzed by the CFPB Student Loan Ombudsman. These complaints were reviewed by the CFPB between September 1, 2015 and August 31, 2016. It also looks at the 3,900 federal loan complaints received between March 1, 2016 and August 31, 2016. The CFPB began receiving federal loan complaints on February 25, 2016. It...

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