Students at a community college in rural Texas may lose access to federal aid as a result of a student-mortgage default measure Congress expanded largely to keep an eye on for-revenue institutions.
Frank Phillips College is among several two-year colleges whose leaders are worried about how their institutions will fare with this fall's release of the first batch of sanction-bearing numbers under the revised federal-loan default rate.
"We comprehend the results."
The U.S. Department of Education now monitors defaults among federal loan recipients for 3 years when they leave school. Two-year rates had previously been the standard.
Student advocates had pushed for the three-year rates. They argued that the new measure would do a better job of gauging students' indebtedness and the value of the education they received.
Default prices are higher under the increased rates, especially among for-earnings.
The three-year fee was 1-3 percent at all public institutions (including four-year institutions) and 8.3 percent at private, non-profit institutions. Two-year rates were 9.6 at publics and 5.2 percent at privates.
Sanctions will kick in with this year's release of three-year rates. (No penalties applied to the results of the first two years of data.)
Universities will drop eligibility for many federal support, such as the Pell Grant system, if their speeds top 30 % for three successive years or 40 % to get one year.
According to an evaluation conducted of info from the first two releases, 218 institutions went above 30 % at one point and 37 -- or 4.3 percent of all institutions participating in federal aid programs -- failed to stay below 40 percent.
The rates set "very low thresholds," Gross said. "We're not really talking about so many institutions."
Frank Phillips College is among several two-year colleges whose leaders are worried about how their institutions will fare with this fall's release of the first batch of sanction-bearing numbers under the revised federal-loan default rate.
"We comprehend the results."
The U.S. Department of Education now monitors defaults among federal loan recipients for 3 years when they leave school. Two-year rates had previously been the standard.
Student advocates had pushed for the three-year rates. They argued that the new measure would do a better job of gauging students' indebtedness and the value of the education they received.
Default prices are higher under the increased rates, especially among for-earnings.
The three-year fee was 1-3 percent at all public institutions (including four-year institutions) and 8.3 percent at private, non-profit institutions. Two-year rates were 9.6 at publics and 5.2 percent at privates.
Sanctions will kick in with this year's release of three-year rates. (No penalties applied to the results of the first two years of data.)
Universities will drop eligibility for many federal support, such as the Pell Grant system, if their speeds top 30 % for three successive years or 40 % to get one year.
According to an evaluation conducted of info from the first two releases, 218 institutions went above 30 % at one point and 37 -- or 4.3 percent of all institutions participating in federal aid programs -- failed to stay below 40 percent.
The rates set "very low thresholds," Gross said. "We're not really talking about so many institutions."
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Lessening a student loan repayment if you don't qualify for student loan forgiveness could be as easy as student loan consolidation or reaging your department of education accounts
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