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The federal government violates its own student loan rules and wastes hundreds of millions of dollars to subsidize perpetually failing black colleges ... a Judicial Watch investigation has found.
The institutions are known as Historically Black Colleges and Universities (HBCU) and JW’s probe has uncovered documents that show American taxpayers are being forced to fund them even when their accreditation has been stripped, they have dismal graduation rates, and rank among the nation’s worst medical schools.
continues giving it–and other troubled black colleges–large sums of money in the form of low-interest “loans” that are usually defaulted. This is done through the Historically Black College and University Capital Financing Program and it’s proven to be a massive boondoggle. ... ..... the files accessed by JW show that the scandalous investment is not only fleecing taxpayers, it’s also breaking rules created by the Obama administration under a 2010 measure that replaced student loans by private lenders with direct loans by the U.S. government.
.... African American community leaders lobbied the Education Department to change the standards. Education Secretary Arne Duncan apologized about the unintended effect on black colleges but publicly maintained that “our department is required to carry out the law as it was designed to protect parents and taxpayers against unaffordable loans.
Behind the scenes his agency quickly circumvented those “laws to protect parents and taxpayers.” In fact, Duncan sent a letter to the Congressional Black Caucus ....
..The agency has used the accommodation to provide near-blanket approvals for PLUS loan applications from previous recipients, according to the records obtained by JW...
The members supporting the effort include Senators Dick Durbin (D-Ill.), Jack Reed (D-RI) and Elizabeth Warren (D-Mass.) signed on to today's letter with U.S. Representatives John Conyers (D-Mich.), Elijah Cummings (D-Md.), Steve Cohen (D-Tenn.), and Hank Johnson (D-Ga.) in support of the effort.
The new guidelines would expand on existing ones and would enable the Department of Education to define what would qualify as an "undue hardship" in a bankruptcy filing, with a view toward increasing the number of borrowers eligible to file. The legislators say it would allow collection efforts to focus on loans with a more realistic chance of recovery.
"Federal law does provide that bankruptcy discharge is available for student loans in cases of 'undue hardship,' and while the courts have established a high legal standard for a debtor to show 'undue hardship' there are some debtors who should be able to avail themselves of this option," the legislators said in a letter to Duncan. "However, the path to an undue hardship discharge is often blocked by Department contractors, such as the Educational Credit Management Corporation (ECMC), which have a practice of aggressively challenging debtors' efforts to show undue hardship." Americans owe more than $1.2 trillion in student loans, surpassing the credit card debt of students and non-students alike.
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Months of bargaining over a wide range of issues have essentially led to an impasse on most matters. As a result, ED now has a free hand to implement rules for the issues that the committee couldn't agree on, with the main ones concerning Federal Student PLUS Loans, the management of distance learning programs and the regulation of campus debit cards and related financial products.
Meanwhile a group of House and Senate Democrats on Thursday introduced legislation designed to "protect students from unfair banking practices involving campus-sponsored financial products and to preserve the integrity of federal student aid programs." The legislation would cover checking accounts and campus-branded debit cards—the very instruments for which the ED committee developed no firm plan. The rule making panel did come to some agreement, albeit and informal one, over new standards for PLUS Loans to graduate students and parents.
Those with debt exceeding $2,085 that is 90 or more days delinquent would be ineligible. The proposal would also change the look-back period for such "adverse credit" history from five years to two years. "The value of the conference is that the participants had their views heard and that ED will take them seriously," said committee delegate Toby Merrill, director of the project on predatory lending at the Legal Services Center at Harvard Law School. "A lot of financial aid school administrators were able to give the Department a view on how aid programs works [at the school level]."
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When the Obama administration changed its financial aid policy and began checking the last five years of a parent’s credit history—which spans the deepest recession in modern history—for defaults, instead of just the last 90 days, as was previously the policy, the rug was pulled out from under black schools. This policy change forced 28,000 HBCU students to drop out, and cost schools $150 million.
But even with such a strong record, the Obama administration has offered a lot more talk than federal dollars to HBCUs, offering only 1.7 percent of their total grants for higher education to HBCUs, even though HBCUs comprise three percent of schools.
Obama Bails Out Black Colleges & Black Student Loans in Contempt of Law
READ THE ENTIRE REPORT HERE>>>> U.S. Pours Millions Into Failing Black Colleges, Breaks New Student Loan Rules | Judicial Watch
The federal government violates its own student loan rules and wastes hundreds of millions of dollars to subsidize perpetually failing black colleges ... a Judicial Watch investigation has found.
The institutions are known as Historically Black Colleges and Universities (HBCU) and JWs probe has uncovered documents that show American taxpayers are being forced to fund them even when their accreditation has been stripped, they have dismal graduation rates, and rank among the nations worst medical schools.continues giving itand other troubled black collegeslarge sums of money in the form of low-interest loans that are usually defaulted. This is done through the Historically Black College and University Capital Financing Program and its proven to be a massive boondoggle. ... ..... the files accessed by JW show that the scandalous investment is not only fleecing taxpayers, its also breaking rules created by the Obama administration under a 2010 measure that replaced student loans by private lenders with direct loans by the U.S. government..... African American community leaders lobbied the Education Department to change the standards. Education Secretary Arne Duncan apologized about the unintended effect on black colleges but publicly maintained that our department is required to carry out the law as it was designed to protect parents and taxpayers against unaffordable loans.
Behind the scenes his agency quickly circumvented those laws to protect parents and taxpayers. In fact, Duncan sent a letter to the Congressional Black Caucus ....
..The agency has used the accommodation to provide near-blanket approvals for PLUS loan applications from previous recipients, according to the records obtained by JW...
Black only colleges are racist.
2016 will be the year incumbents push for a law to forgive student loans, just in time for reelection.
Obama Bails Out Black Colleges & Black Student Loans in Contempt of Law
READ THE ENTIRE REPORT HERE>>>> U.S. Pours Millions Into Failing Black Colleges, Breaks New Student Loan Rules | Judicial Watch
The federal government violates its own student loan rules and wastes hundreds of millions of dollars to subsidize perpetually failing black colleges ... a Judicial Watch investigation has found.
The institutions are known as Historically Black Colleges and Universities (HBCU) and JW’s probe has uncovered documents that show American taxpayers are being forced to fund them even when their accreditation has been stripped, they have dismal graduation rates, and rank among the nation’s worst medical schools.
continues giving it–and other troubled black colleges–large sums of money in the form of low-interest “loans” that are usually defaulted. This is done through the Historically Black College and University Capital Financing Program and it’s proven to be a massive boondoggle. ... ..... the files accessed by JW show that the scandalous investment is not only fleecing taxpayers, it’s also breaking rules created by the Obama administration under a 2010 measure that replaced student loans by private lenders with direct loans by the U.S. government.
.... African American community leaders lobbied the Education Department to change the standards. Education Secretary Arne Duncan apologized about the unintended effect on black colleges but publicly maintained that “our department is required to carry out the law as it was designed to protect parents and taxpayers against unaffordable loans.
Behind the scenes his agency quickly circumvented those “laws to protect parents and taxpayers.” In fact, Duncan sent a letter to the Congressional Black Caucus ....
..The agency has used the accommodation to provide near-blanket approvals for PLUS loan applications from previous recipients, according to the records obtained by JW...
