The Department’s announcement is just the latest indication that federal policymakers believe greater institutional accountability for loans is one key part of tackling the rising student debt crisis. The head of the Senate committee that tackles education issues has expressed a strong desire to adopt some form of “risk-sharing” that would require colleges to pay back some of the federal funds they receive when students cannot afford their loans. Earlier this month, a bipartisan pair of senators introduced a bill to do just that.
How The Government Plans To ‘Claw Back’ Loan Money From Shady Colleges
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Vice President, Postsecondary Education