Non-Profit Lenders

PHEAA Temporarily Suspends Federal Student Loans

Spellings Takes the Heat for President Bush's Education Budget Request

Public Colleges and Universities Pinched by State Budget Shortfalls

Brown University Increases Financial Aid

Last year when Congress cut subsidies to lenders making federally backed student loans, critics argued that the cut would hurt borrowers. They argued that lenders would reduce voluntarily provided "borrower benefits," because the subsidy cuts would make providing them unaffordable. The argument continues to appear in the press, and certain Members of Congress lamented borrower benefits again during consideration of the Higher Education Act reauthorization earlier this month.

Michigan Non-Profit Lender Pulling Out of Private-Loan Market

Lawsuit takes aim at study-abroad "home – fees"

More Students Pass AP Exams, but Achievement Gaps are Widening

House Approves Bill to Reauthorize Higher Education Act

[slideshow]In an overwhelming 354 to 58 vote, the House approved legislation on Thursday that would reauthorize the Higher Education Act for the next five years. The College Opportunity and Affordability Act (H.R. 4137) would impose new restrictions on the relationships between student loan providers and colleges, increase transparency in the private student loan market, simplify the process of applying for financial aid, keep textbook costs down, increase aid for veterans and military families, and tackle rising tuition costs. The legislation would also significantly weaken a provision in the law that protects students from unscrupulous for-profit trade schools.

PHEAA May Pay $15 Million For 9.5% Loan Payments

The Department of Education has asked the Pennsylvania Higher Education Assistance Agency (PHEAA), one of the country's largest nonprofit student loan providers, to repay as much as $15 million in federal payments it improperly obtained by exploiting a subsidy program that guaranteed loan providers a 9.5 percent rate of return on government-backed student loans. The request comes two months after an audit by the Department’s own Inspector General found that PHEAA had improperly obtained $34 million in subsidy payments. The Department rejected these findings and suggested the $15 million price tag but is ultimately letting PHEAA decide how much it has to repay. A PHEAA spokesman suggested to The New York Times that the lender may end up with "zero liability." PHEAA is the first party in the 9.5 scandal to be held financialy accountable for its actions. In 2006 another lender, Nelnet, was caught with $278 in improperly obtained Department funds.

In approximately three weeks, the U.S. House of Representatives is expected to take up legislation that would impose new restrictions on the relationships between colleges and student loan companies. While the effort is to be applauded, the legislation could go much further in eliminating the types of "pay for play" conflicts of interest…

Note: This post pre-dates Higher Ed Watch's shift to a new publishing system. For the complete original post, including any comments, please click here.

Over the last year, as we have investigated and reported on the "pay for play" student loan scandals, we have heard from some skeptical loan industry and college officials who question whether any students have actually been hurt by the unethical practices that have been revealed.

Note: This post pre-dates Higher Ed Watch's shift to a new publishing system. For the complete original post, including any comments, please click here.

From the start of Higher Ed Watch in September 2006, we have focused a healthy amount of attention on the non-profit company EduCap, which until recently marketed private student loans under the brand name Loan to Learn. The company, which is owned by the Washington, DC socialite Catherine B. Reynolds, shut down…

Note: This post pre-dates Higher Ed Watch's shift to a new publishing system. For the complete original post, including any comments, please click here.

In honor of the conclusion of the harvest season-and in order to give ourselves plenty of time for turkey, mashed potatoes, and pumpkin pie-Higher Ed Watch is taking the week off to celebrate Thanksgiving. But we'd be remiss not to also note the Pennsylvania Higher Education Assistance Authority's (PHEAA) turkey surprise.

Note: This post pre-dates Higher Ed Watch's shift to a new publishing system. For the complete original post, including any comments, please click here.

More Questionable Spending Uncovered at PHEAA

Gummy brains, brass clocks, and peppermint candies were among the promotional giveaways the Pennsylvania Higher Education Assistance Agency (PHEAA) spent $2.2 million on over a five-year period, the Patriot-News of…

Note: This post pre-dates Higher Ed Watch's shift to a new publishing system. For the complete original post, including any comments, please click here.