Yale & Penn Sue Defaulting Students But UC Doesn’t

From the LA Daily News:

Needy U.S. borrowers are defaulting on almost $1 billion in federal student loans earmarked for the poor, leaving schools such as Yale and the University of Pennsylvania with little choice except to sue their graduates. The record 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. Yale, Penn and George Washington University have all sued former students over nonpayment, court records show… 

Repaying Perkins loans may be a lower priority for borrowers with multiple debts, said Nancy Coolidge, associate director of student financial support for the University of California system. They may be more likely to pay back private student loans first because they can carry much higher interest rates, she said. Perkins loans are given to the most at-risk students, and “they may have the least ability to pay it back,” Coolidge said…

The University of California system tries to use its own personnel before suing Perkins debtors because balances are relatively small, said Coolidge. When borrowers don’t have assets or income, winning a judgment doesn’t actually result in collecting the money, she said. “It’s not that we wouldn’t do it,” she said. “It’s not that practical.”

Full story at http://www.dailynews.com/breakingnews/ci_22530769/schools-sue-graduates-amid-record-defaults-federal-loans

If they ain’t got it, it’s hard to get it:

8 thoughts on “Yale & Penn Sue Defaulting Students But UC Doesn’t

  1. Brokersring.com – Learn how to turn $500 into $5,000 in a month! [url=http://www.brokersring.com/]Make Money Online[/url] – The Secret Reveled with Binary Option Binary Options is the way to [url=http://www.brokersring.com/]make money[/url] securely online

  2. Hi would you mind letting me know which web host you're working with? I've loaded your blog in 3 different internet browsers and I must say this blog loads a lot faster then most. Can you recommend a good internet hosting provider at a reasonable price? Thanks, I appreciate it!Stop by my website gov free money

  3. I absolutely love your website.. Very nice colors & theme.Did you create this site yourself? Please reply back as I'm trying to create my own site and want to learn where you got this from or just what the theme is called. Thank you!Also visit my weblog day trading course

  4. Its like you read my mind! You seem to know so much about this, like you wrote the book in it or something. I think that you can do with a few pics to drive the message home a little bit, but instead of that, this is magnificent blog. An excellent read. I'll definitely be back.My web blog …

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s