Saturday, February 11, 2017

Colleges are pushed to stand behind what they sell with money-back guarantees - John Marcus, Hechinger Report

As prices rise, pressure to make schools share risk is winning broad bipartisan support. There is increasing pressure, likely to heighten further this year, to make universities and colleges stand behind what they’re selling. Converging proposals would variously require or encourage institutions to assume part of the losses from loans on which their students default, warrant that their students will graduate within a given period of time, and pledge that their graduates will land jobs with salaries worth what they pay for their educations. A bipartisan bill in Congress called for colleges to lose eligibility for their students to get federal loans altogether and cover some of the debt their students fail to repay if the proportion who default exceeds a certain level.

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