At American Universities, The Education Starts After You Graduate. Now Pay Up, Sucka

Classroom. Maine news from The Rumford MeteorNeedy U.S. borrowers are defaulting on almost $1 billion in federal student loans earmarked for the poor, leaving schools such as Yale and the University of Pennsylvania with little choice except to sue their graduates. The record defaults on federal Perkins loans may jeopardize the prospects of current students since they are part of a revolving fund that colleges give to students who show extraordinary financial hardship. Yale, Penn and George Washington University have all sued former students over nonpayment, court records show. While no one tracks the number of lawsuits, students defaulted on $964 million in Perkins loans in the year ended June 2011, 20 percent more than five years earlier, government data show. Unlike most student loans — distributed and collected by the federal government — Perkins loans are administered by colleges, which use repayment money to lend to other poor students. (read more at Bangor Daily News)

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Posted by on Feb 6 2013. Filed under featured, Nope Not Homeschooled. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

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