"A report released last week by the Student Borrower Protection Center shed light on public colleges and universities that have been promoting high-risk loans for short-term programs, but in several respects, the report prompted just as many questions as it offered answers," Inside Higher Ed reports.
..."Justin Draeger, president of the National Association of Student Financial Aid Administrators, said that though he’s not yet familiar with the loan products for nondegree programs, the terms and conditions of the loans referenced in the report didn’t appear to be surprising.
'I can certainly look at the numbers and say those are not great finance terms and the penalties appear quite stiff,' Draeger said. 'But again, that doesn't necessarily surprise me when you're talking about an unsecured loan for a short-term program.'
NASFAA and its ethics commission plan to talk with its member institutions to get greater clarity about the relationship between institutions and loan providers, the types of disclosures that are provided to students about the loans, and the overall marketplace for private loans that help students pay for boot camps.
'Some of the things we read in the report are obviously disconcerting, and we need to dig in and just learn a little bit more about what they are and how schools are using them,' Draeger said."
NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.
Publication Date: 6/17/2021