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Financial Aid in the News

For-Profit Colleges Seek To Fix New Student-Loan Problem (The Chronicle of Higher Education)

"After rushing to enact a law that makes it easier for students to obtain more federal student loans, Congressional leaders and lobbyists for for-profit colleges may now be close to a deal to help those colleges avoid an unintended result of that new law," The Chronicle of Higher Education reports. "The parties are seeking a measure to keep the colleges from running afoul of the requirement that at least 10 percent of their revenue comes from nonfederal sources. The colleges have been concerned about the requirement, known as the 90-10 rule, ever since Congress this past spring raised the limits on the amounts students may borrow under federal loan programs. One option under discussion would allow the colleges to temporarily treat the $2,000 of newly allowed loan funds as part of their 10 percent."

You can read the complete July 14, 2008 Chronicle of Higher Education article on-line. A paid subscription may be required.

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