Today I Learn… I make a point of learning something new everyday. This is what I learn each day

1, Mar 14, 2013

Yale, Penn and George Washington University have all sued former students over nonpayment

Filed under: College,Economy — admin @ 12:15 am

On 2/4/2013, I read an article, “Yale Suing Former Students Shows Crisis in Loans to Poor,” by Janet Lorin.

Many college graduates, unable to find a job upon graduation, “are defaulting on almost $1 billion in federal student loans earmarked for the poor, leaving schools such as Yale University and the University of Pennsylvania with little choice except to sue their graduates.”

The worst part is the record high 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.”

Perkins loans are earmarked for students with extraordinary financial hardship. They are administered by colleges, which use repayment money to lend to other poor students. Yale, Penn and George Washington University have all sued former students over nonpayment.

I have learned that not just the government but also the universities that will go after those who can’t pay. But given the current job market, what can they get from suing their graduates who are unable to pay back their student loans?

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