Defaulted Student Loans Detail
As growing numbers of students at for-profit colleges have defaulted on their debts in recent years, bringing government scrutiny and the threat of financial penalties, some institutions have unleashed a novel strategy aimed at improving their numbers: They have systematically encouraged students to stay current on their debts just past the point at which the government measures default rates.Companies have established call centers that locate former students at imminent risk of default and contact them dozens of times to urge them to seek official extensions on their debts, according to plans outlined in internal documents obtained by the Senate education committee and reviewed by The Huffington Post.
The goal: reduce the number of students who fall behind on their payments within two years of leaving the institution, the time frame the government uses to measure the student loan default rate. By reducing that number, for-profit colleges have been able to avoid financial sanctions threatening their access to federal financial aid dollars -- the source of more than three-quarters of revenue for publicly traded college corporations.
Defaulted Student Loans
Defaulted Student Loans
Defaulted Student Loans
Defaulted Student Loans
Defaulted Student Loans
Defaulted Student Loans
Defaulted Student Loans
Defaulted Student Loans
Defaulted Student Loans
Defaulted Student Loans
Defaulted Student Loans
Defaulted Student Loans
Defaulted Student Loans
Defaulted Student Loans
Defaulted Student Loans
Defaulted Student Loans
Defaulted Student Loans
Defaulted Student Loans
Defaulted Student Loans
As growing numbers of students at for-profit colleges have defaulted on their debts in recent years, bringing government scrutiny and the threat of financial penalties, some institutions have unleashed a novel strategy aimed at improving their numbers: They have systematically encouraged students to stay current on their debts just past the point at which the government measures default rates.Companies have established call centers that locate former students at imminent risk of default and contact them dozens of times to urge them to seek official extensions on their debts, according to plans outlined in internal documents obtained by the Senate education committee and reviewed by The Huffington Post.
The goal: reduce the number of students who fall behind on their payments within two years of leaving the institution, the time frame the government uses to measure the student loan default rate. By reducing that number, for-profit colleges have been able to avoid financial sanctions threatening their access to federal financial aid dollars -- the source of more than three-quarters of revenue for publicly traded college corporations.
Defaulted Student Loans
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