Student Financial Aid
The area of student financial aid has been the recent subject of extensive press coverage.
Investigations by the
New York Office of Attorney General revealed that financial aid officers in multiple states have been recommending student loan companies based on a personal financial interest of in exchange for gift incentives.
Settlement agreements have been reached with several higher education institutions and
loan providers.
Cases
- In re Fabrizio, 2007 WL 1219646 (Bankr.W.D.Pa.). A Chapter 7 debtor did not make a good-faith effort to repay his consolidated student loan thus failing to satisfy the Brunner test governing undue hardship discharge of a student loan debt. The debtor made no loan payments after his loan consolidation date, even though for all but six months of that time period he was earning $37,000 per year. The debtor also did not show that his financial situation was due to factors beyond his reasonable control, and the student loan debt was approximately 80 percent of the original debt to be discharged. A copy of this decision is not available. Please contact your University Legal Counsel if you would like to see this opinion.
General Information
- The Department of Education has issued proposed student loan regulations. The proposed rules would strengthen restrictions on lender inducements to institutions participating in federal student financial aid programs, limit gifts of more than nominal value from lenders to institutional financial aid officers, require that institutions include at least three unaffiliated lenders on any preferred lender list they maintain, require disclosure of the criteria used to select preferred lenders, and require institutions to clearly state that students have the right to select any lender they choose. (June 1, 2007)
- Pending Legislation Impacting Financial Aid, National Council of Higher Education Loan Program (2007-2007).
- The National Association of Student Financial Aid Administrators (NASFAA) issued a Statement of Ethical Principles and Code of Conduct (May 24, 2007)
- Student Financial Aid Handbook for 2006-2007, U.S. Department of Education
- Student Loan Calculator
- Financial Aid Resource Publication, U.S. Department of Education
- Student Aid on the Web, U.S. Department of Education
- FFEL and Direct Loan Interest Rates Effective July 1, 2007
- Eligibility Criteria to Receive Federal Student Loans
- Federal Perkins Loans, U.S. Department of Education
- Stafford Loans, U.S. Department of Education
- National Student Loan Data System (NSLDS), U.S. Department of Education
- Free Application for Federal Student Aid (FAFSA), U.S. Department of Education
- Financial Aid Glossary and Acronyms (Finaid)
- Comprehensive Financial Aid Glossary (Duke University)