Student Union
Report: Education Department Mismanages Student Loans
The U.S. Department of Education has failed to properly oversee more than $1 trillion in federally held student loans annually, the inspector general's office has found.
Lenders were overpaid and borrowers were inaccurately charged because the department's Federal Student Aid (FSA) program failed to ensure that nine lenders followed federal regulations, the IG's office reported.
The IG identified 210 of 343 instances (61 percent) of "servicer noncompliance" in federal loan requirements. Noncompliance was found in forbearances, deferments, income-driven repayment, interest rates, due diligence and consumer protection between the beginning of 2015 and Sept. 30, 2017.
"In most cases, FSA only required servicers to correct the accounts of borrowers affected by the noncompliance specifically identified by FSA," meaning FSA failed to police itself.
"As a result, FSA management did not have reasonable assurance that servicers were complying with federal loan servicing requirements when handling borrowers' inquiries, borrowers might not have been protected from poor services, and taxpayers might not have been protected from improper payments," the report stated.
FSA is the largest provider of student financial aid in the nation, handling more than $120 billion a year in federal grants, loans and work-study aid to more than 13 million students. It has more than 1,300 employees.
The inspector general wrote that FSA "neither agreed nor disagreed with the findings but agreed with all six recommendations" the IG said would benefit students and their families.
The IG said as of September 2017, FSA was responsible for about $1.147 trillion of federally held student loans. Of that, $950 billion (93 percent) was assigned to four servicers — Pennsylvania Higher Education Assistance Agency ($319 billion), Great Lakes ($236 billion), Navient ($215 billion) and Nelnet ($180 billion).
The remaining $76 billion (7 percent) was assigned to Educational Services of America Inc., Missouri Higher Education Loan Authority, New Hampshire Higher Education Loan Corp., Oklahoma Student Loan Authority and Utah Higher Education Assistance Authority.
The IG report noted that about $120 billion (10 percent) of the $1.147 trillion in outstanding federally held student loan debt was in default.
"Defaulted loans were assigned to private collection agencies, not to servicers," it wrote.
Congress is considering a bill introduced by Tennessee Republican Sen. Lamar Alexander that would overhaul the student loan system. It includes garnishing borrower's paychecks for loan repayments, a proposal that has some borrowers fuming as they face historically high costs of education in the U.S.
The average cost of tuition and fees at a U.S. college or university is around $25,000 a year, while more exclusive schools charge up to $70,000 in annual tuition and fees.
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Trump administration opens antisemitism inquiries at 5 colleges, including Columbia and Berkeley
The Trump administration is opening new investigations into allegations of antisemitism at five U.S. universities including Columbia and the University of California, Berkeley, the Education Department announced Monday.
It's part of President Donald Trump's promise to take a tougher stance against campus antisemitism and deal out harsher penalties than the Biden administration, which settled a flurry of cases with universities in its final weeks. It comes the same day the Justice Department announced a new task force to root out antisemitism on college campuses.
In an order signed last week, Trump called for aggressive action to fight anti-Jewish bias on campuses, including the deportation of foreign students who have participated in pro-Palestinian protests.
Along with Columbia and Berkeley, the department is now investigating the University of Minnesota, Northwestern University and Portland State University. The cases were opened using the department's power to launch its own civil rights reviews, unlike the majority of investigations, which stem from complaints.
Messages seeking comment were left with all five universities.
A statement from the Education Department criticized colleges for tolerating antisemitism after Hamas' Oct. 7, 2023, attack on Israel and a wave of pro-Palestinian protests that followed. It also criticized the Biden administration for negotiating "toothless" resolutions that failed to hold schools accountable.
"Today, the Department is putting universities, colleges, and K-12 schools on notice: this administration will not tolerate continued institutional indifference to the wellbeing of Jewish students on American campuses," said Craig Trainor, the agency's acting assistant secretary for civil rights.
The department didn't provide details about the inquiries or how it decided which schools are being targeted. Presidents of Columbia and Northwestern were among those called to testify on Capitol Hill last year as Republicans sought accountability for allegations of antisemitism. The hearings contributed to the resignation of multiple university presidents, including Columbia's Minouche Shafik.
An October report from House Republicans accused Columbia of failing to punish pro-Palestinian students who took over a campus building, and it called Northwestern's negotiations with student protesters a "stunning capitulation."
House Republicans applauded the new investigations. Representative Tim Walberg, chair of the Education and Workforce Committee, said he was "glad that we finally have an administration who is taking action to protect Jewish students."
Trump's order also calls for a full review of antisemitism complaints filed with the Education Department since Oct. 7, 2023, including pending and resolved cases from the Biden administration. It encourages the Justice Department to take action to enforce civil rights laws.
Last week's order drew backlash from civil rights groups who said it violated First Amendment rights that protect political speech.
The new task force announced Monday includes the Justice and Education departments along with Health and Human Services.
"The Department takes seriously our responsibility to eradicate this hatred wherever it is found," said Leo Terrell, assistant attorney general for civil rights. "The Task Force to Combat Anti-Semitism is the first step in giving life to President Trump's renewed commitment to ending anti-Semitism in our schools."
- By VOA News
STEM, business top subjects for international students
The Times of India breaks down the most popular subjects for international students to study in the U.S.
STEM and business lead the pack. Read the full story here. (January 2025)
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Safety and visa difficulties among misconceptions about US colleges
U.S. News & World report addresses some of the misconceptions about U.S. colleges and universities, including the difficulty of getting a visa.
Read the full story here. (January 2025)
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Work opportunities help draw international students to US schools
US News & World Report details the three top factors in foreign students' decision to study in the U.S. They include research opportunities and the reputation of U.S. degrees. Read the full story here. (December 2024)
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British student talks about her culture shock in Ohio
A British student who did a year abroad at Bowling Green State University in Ohio talks about adjusting to life in America in a TikTok video, Newsweek magazine reports.
Among the biggest surprises? Portion sizes, jaywalking laws and dorm room beds.
Read the full story here. (December 2024)
