Ministry of Education rejects for-profit reinstatement request |
The federal student aid office is very critical of the operations of the Florida Coastal School of Law.
As promised by the Biden administration, for-profit institutions are being watched closely to ensure that they serve students responsibly.
So when the Florida Coastal School of Law recently attempted to seek her reinstatement with the federal student aid office, officials there and the United States Department of Education retaliated with swift denial and strong criticism.
They said the institution failed to meet important standards in Title IV and the Higher Education Law – financial accountability, good conduct as a trustee and administrative capacity. According to the FSA, officials at the Florida Coastal School of Law have also “refused to sign” their contractual agreement in order to continue the FSA program.
“The Florida Coastal School of Law has operated recklessly and irresponsibly, putting its students at financial risk rather than providing them with the opportunities they were looking for,” said FSA leader Richard Cordray. “Our commitment is to stand up for all students and to ensure that their institutions meet the standards that our students and our communities expect and deserve.”
The FSA said the Florida Coast School of Law, which had the lowest possible composite score (-1.0) for financial responsibility, would have 10 days to challenge the decision, but had to produce “factual evidence” in order to. change their status. Even then, there is no guarantee.
“Too often we see for-profit schools trying to take advantage of students, abuse taxpayer dollars, and bend the rules to participate in federal student aid programs,” the US secretary said. Education, Miguel Cardona. “Today we want to be heard and understood by for-profit schools across the country: we will ensure that they deliver on their commitments to students, families and taxpayers.
Consequences and remedies
In the case of the Florida Coastal School of Law (and its sister schools in Charlotte and Phoenix, which have already been closed), he noted that student enrollments had declined, the school had significant debts, and that it had failed to “provide essential services which it advertises and meets its obligations to properly determine student eligibility.” He also did not offer any updates to the FSA on accreditation or its “ownership structure.” There is great uncertainty as to its viability going forward after this owner, a private equity firm, relinquished control.
If the Florida Coastal School of Law is closed, the department said it would provide information to students about releasing their loans or potentially transferring credit to another institution.
Under the Biden and Cardona administration, the education department aims not only to ensure that for-profit institutions operate according to these standards, but also to ensure that students are not disadvantaged or financially harmed by them.
One of the goals the president spelled out in his “Plan for Education Beyond High School” is to prevent schools from taking advantage of students, who Biden said were three times more likely to default on high school. student loans.
Face-to-face for-profit, the document says, “The Biden administration will require that for-profit companies first prove their worth to the US Department of Education before being eligible for federal aid. The Biden administration will also revert to the Obama-Biden borrower defense rule, forgetting the debt of people who have been cheated by the worst for-profit college or career profiteers.
This rule of defense is helping more than 70,000 students recover loan funds that were canceled and total $ 1 billion.