"A Purdue University financial-aid program that promised to reshape the way students paid for college has come under national scrutiny from some consumer advocates and disgruntled borrowers," The Chronicle of Higher Education reports.
... "But in recent months, the plan has attracted a wide range of critics, including some students who received aid and their parents. The Student Borrower Protection Center, a left-leaning watchdog group, has asked the U.S. Department of Education to investigate whether the university is violating federal law by promoting a loan program that it helps run. The department has also issued a reminder to colleges of their legal obligations when offering income-share agreements.
A written statement from Tim Doty, a Purdue spokesman,denies that the university is breaking any laws and says that the university seeks to provide clear information to students about how the plan works and what amount they would be obligated to pay.
Despite those disclosures detailing possible outcomes, some students who signed a contract for the program feel they were duped.
... The marketing may appeal to parents as much as students, said Justin Draeger, president and chief executive of the National Association of Student Financial Aid Administrators. Parents don't have to co-sign for ISAs the way they do for student loans.
But initial excitement over the ISA has, in some cases, turned to disappointment and anger, particularly for some who landed a well-paying job after graduating from Purdue.
'It's clear that in some students' case, what they were expecting versus what they were getting didn't align,' 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: 5/20/2022