Tag Archives: United States Department of Education

STUDENT LOANS

UNITED WE STAND, DIVIDED WE FALL! In protest of the nearly $1 trillion dollar student loan debt bubble and your ASTRONOMICAL student loan debt that’s growing bigger by the day!Apply for an UNAUTHORIZED SIGNATURE / UNAUTHORIZED PAYMENT false certification loan discharge  The nearly $1 trillion dollar student loan debt, the $1500/month interest only payment, the double in some cases almost triple outstanding principle amount owing, etc. is due to the following:

Bank FFELP lenders partnered with loan guaranty agencies and student loan servicers to create student loan brokerage firms aka special purpose entities the majority of which were incorporated in State of Florida. For example, Student Loan Xpress, Goal Financial, K2 Financial, Education Finance Partners, US Education Finance etc. Kinda like the storefront mortgage companies and unlicensed brokers, think Enron’s LJM2, the Raptors, Chewco etc .  The bank ffelp lenders, servicers and guaranty agencies used the student loan brokerage companies to access and repeatedly access students’ personal information, nslds, and credit reports for what they claimed were Marketing or Promotional Purposes. If you don’t believe me then just check your credit reports from 2006-2008. I bet you’ll have 3 ‘Promotional Purpose’ pages that are all student loan companies.

Unfortunately, they weren’t accessing your reports for marketing purposes as they claimed. They were accessing the reports for your personal information which they unlawfully used to originate federal consolidation loans. The consolidation loans were then purchased by student loan servicers/guaranty agencies from lenders on the Federal Family Education Loan Program secondary market.  The servicers/guaranty agencies issued tax-exempt bonds to obtain funds to acquire loans.  Billions of such bonds issued prior to October 1, 1993, were outstanding.  The servicers/guaranty agencies  bills the U.S. Department of Education for 9.5 percent special allowance payments on the loans it purchases, holds, and services.  

For example, in April 2003, Nelnet implemented a process (“Project 950”) to increase the amount of its loans receiving special allowance [taxpayer subsidy payments] under the 9.5 percent floor. . . . Nelnet repeated this process many times, increasing the amount of loans it billed under the 9.5 percent floor from about $551 million in March 2003 to about $3.66 billion in June 2004. PHEAA did it too! Guess how they did it? You guessed it, by partnering with lenders to create student loan brokerage firms, special purpose entities and special purpose vehicles that unlawfully used your personal information to create federal consolidation loans. The lenders then used the fraudulent consolidations loans to replace loans that defeased, were repaid or discharged in their 9.5 percent floor loan securitized trusts and student loan revenue bonds. Consequently, because the federal consolidation loans were unlawfully created by the student loan brokerage firms (lenders + servicers + guaranty agencies) theft of your personal information they are not valid obligations; thus they are not enforceable! So, in protest of the nearly $1 trillion dollar student loan debt bubble and your ASTRONOMICAL student loan debt that’s growing bigger by the day pull your NSLDS report highlight that fraudulent loan, complete an UNAUTHORIZED SIGNATURE / UNAUTHORIZED PAYMENT false certification discharge form, and send it to fraudnet@gao.gov!

Don’t forget to name your lender, servicer, and guaranty agency on the discharge form and attach your NSLDS report with showing the fraudulent consolidation loan you never applied for or agreed to!

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Filed under 9.5 percent, 9.5 percent SAP, federal direct loans, FFELP, for-profit colleges, for-profit schools, PLUS, Stafford, student loan lenders, student loan program, student loan scandal, student loans, Uncategorized

STUDENT LOAN DEBT PROTEST!

UNITED WE STAND, DIVIDED WE FALL! In protest of the nearly $1 trillion dollar student loan debt bubble and your ASTRONOMICAL student loan debt that’s growing bigger by the day!Apply for an UNAUTHORIZED SIGNATURE / UNAUTHORIZED PAYMENT false certification loan discharge  The nearly $1 trillion dollar student loan debt, the $1500/month interest only payment, the double in some cases almost triple outstanding principle amount owing, etc. is due to the following:

Bank FFELP lenders partnered with loan guaranty agencies and student loan servicers to create student loan brokerage firms aka special purpose entities the majority of which were incorporated in State of Florida. For example, Student Loan Xpress, Goal Financial, K2 Financial, Education Finance Partners, US Education Finance etc. Kinda like the storefront mortgage companies and unlicensed brokers, think Enron’s LJM2, the Raptors, Chewco etc .  The bank ffelp lenders, servicers and guaranty agencies used the student loan brokerage companies to access and repeatedly access students’ personal information, nslds, and credit reports for what they claimed were Marketing or Promotional Purposes. If you don’t believe me then just check your credit reports from 2006-2008. I bet you’ll have 3 ‘Promotional Purpose’ pages that are all student loan companies.

Unfortunately, they weren’t accessing your reports for marketing purposes as they claimed. They were accessing the reports for your personal information which they unlawfully used to originate federal consolidation loans. The consolidation loans were then purchased by student loan servicers/guaranty agencies from lenders on the Federal Family Education Loan Program secondary market.  The servicers/guaranty agencies issued tax-exempt bonds to obtain funds to acquire loans.  Billions of such bonds issued prior to October 1, 1993, were outstanding.  The servicers/guaranty agencies  bills the U.S. Department of Education for 9.5 percent special allowance payments on the loans it purchases, holds, and services.  

For example, in April 2003, Nelnet implemented a process (“Project 950”) to increase the amount of its loans receiving special allowance [taxpayer subsidy payments] under the 9.5 percent floor. . . . Nelnet repeated this process many times, increasing the amount of loans it billed under the 9.5 percent floor from about $551 million in March 2003 to about $3.66 billion in June 2004. PHEAA did it too! Guess how they did it? You guessed it, by partnering with lenders to create student loan brokerage firms, special purpose entities and special purpose vehicles that unlawfully used your personal information to create federal consolidation loans. The lenders then used the fraudulent consolidations loans to replace loans that defeased, were repaid or discharged in their 9.5 percent floor loan securitized trusts and student loan revenue bonds. Consequently, because the federal consolidation loans were unlawfully created by the student loan brokerage firms (lenders + servicers + guaranty agencies) theft of your personal information they are not valid obligations; thus they are not enforceable! So, in protest of the nearly $1 trillion dollar student loan debt bubble and your ASTRONOMICAL student loan debt that’s growing bigger by the day pull your NSLDS report highlight that fraudulent loan, complete an UNAUTHORIZED SIGNATURE / UNAUTHORIZED PAYMENT false certification discharge form, and send it to fraudnet@gao.gov!

Don’t forget to name your lender, servicer, and guaranty agency on the discharge form and attach your NSLDS report with showing the fraudulent consolidation loan you never applied for or agreed to!

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Filed under 9.5 percent, 9.5 percent SAP, federal direct loans, FFELP, for-profit colleges, for-profit schools, PLUS, Stafford, student loan lenders, student loan program, student loan scandal, student loans, Uncategorized

STUDENT LOAN DEBT PROTEST!

Texas Guaranteed Student Loan Corp. Image by D...

Image via Wikipedia

UNITED WE STAND, DIVIDED WE FALL! In protest of the nearly $1 trillion dollar student loan debt bubble and your ASTRONOMICAL student loan debt that’s growing bigger by the day!Apply for an UNAUTHORIZED SIGNATURE / UNAUTHORIZED PAYMENT false certification loan discharge  The nearly $1 trillion dollar student loan debt, the $1500/month interest only payment, the double in some cases almost triple outstanding principle amount owing, etc. is due to the following:

Bank FFELP lenders partnered with loan guaranty agencies and student loan servicers to create student loan brokerage firms aka special purpose entities the majority of which were incorporated in State of Florida. For example, Student Loan Xpress, Goal Financial, K2 Financial, Education Finance Partners, US Education Finance etc. Kinda like the storefront mortgage companies and unlicensed brokers, think Enron’s LJM2, the Raptors, Chewco etc .  The bank ffelp lenders, servicers and guaranty agencies used the student loan brokerage companies to access and repeatedly access students’ personal information, nslds, and credit reports for what they claimed were Marketing or Promotional Purposes. If you don’t believe me then just check your credit reports from 2006-2008. I bet you’ll have 3 ‘Promotional Purpose’ pages that are all student loan companies.

Unfortunately, they weren’t accessing your reports for marketing purposes as they claimed. They were accessing the reports for your personal information which they unlawfully used to originate federal consolidation loans. The consolidation loans were then purchased by student loan servicers/guaranty agencies from lenders on the Federal Family Education Loan Program secondary market.  The servicers/guaranty agencies issued tax-exempt bonds to obtain funds to acquire loans.  Billions of such bonds issued prior to October 1, 1993, were outstanding.  The servicers/guaranty agencies  bills the U.S. Department of Education for 9.5 percent special allowance payments on the loans it purchases, holds, and services.  

For example, in April 2003, Nelnet implemented a process (“Project 950”) to increase the amount of its loans receiving special allowance [taxpayer subsidy payments] under the 9.5 percent floor. . . . Nelnet repeated this process many times, increasing the amount of loans it billed under the 9.5 percent floor from about $551 million in March 2003 to about $3.66 billion in June 2004. PHEAA did it too! Guess how they did it? You guessed it, by partnering with lenders to create student loan brokerage firms, special purpose entities and special purpose vehicles that unlawfully used your personal information to create federal consolidation loans. The lenders then used the fraudulent consolidations loans to replace loans that defeased, were repaid or discharged in their 9.5 percent floor loan securitized trusts and student loan revenue bonds. Consequently, because the federal consolidation loans were unlawfully created by the student loan brokerage firms (lenders + servicers + guaranty agencies) theft of your personal information they are not valid obligations; thus they are not enforceable! So, in protest of the nearly $1 trillion dollar student loan debt bubble and your ASTRONOMICAL student loan debt that’s growing bigger by the day pull your NSLDS report highlight that fraudulent loan, complete an UNAUTHORIZED SIGNATURE / UNAUTHORIZED PAYMENT false certification discharge form, and send it to fraudnet@gao.gov!

Don’t forget to name your lender, servicer, and guaranty agency on the discharge form and attach your NSLDS report with showing the fraudulent consolidation loan you never applied for or agreed to!

UNITED WE STAND, DIVIDED WE FALL!!!

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Filed under 9.5 percent, 9.5 percent SAP, federal direct loans, FFELP, for-profit colleges, for-profit schools, PLUS, Stafford, student loan lenders, student loan program, student loan scandal, student loans, Uncategorized

Admissions Rep Sues Pennsylvania Trade School

Seal of the United States Department of Education

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Pennco Tech admitted every student who applied, suit charges

04/19/2011 | Truman Lewis | ConsumerAffairs.com

An admissions rep at Pennco Tech, a trade school in Bristol, Pa., claims the school fired him for refusing to participate in a racketeering scheme that ensured that every student who applied would be enrolled.

Matthew Hamilton claims the scam was so blatant that a senior admissions rep “had to physically stand over the students to make sure they were entering the correct answers” on entrance exams.

Hamilton’s suit is just the latest in a lengthy series of lawsuits and allegations that many for-profit schools are providing nearly-worthless degrees and certificates while burdening students with large debts that they are unlikely to repay.

Hamilton’s study alleges that during his one and a half years at the school, test results were falsified, students were misled and the government and lending institutions were defrauded. Hamilton said some students had learning disabilities so severe that admissions staff “had to physically stand over them to make sure they were entering the correct answers,” even though accrediting requirements prohibit admissions personnel from administering tests.

Hamilton said he was “point-blank directed … to participate in the falsification process” to ensure that every student who applied was enrolled even though he said he “adamantly objected.”

Besides seeking damages for wrongful discharge, Hamilton’s suit alleges that his firing constituted a violation of the Pennsylvania Whistleblower Act.

Trade school

Pennco is a trade school that provides education in fields including pharmacy tech, auto repair, air conditioning, plumbing and many other fields. It is accredited by the Accrediting Commission of Career Schools and Colleges (ACCSC), Arlington, Va. Besides its Bristol location, it also operates a school in Blackwood, N.J.

Pennco does not appear on the ACCSC’s list of schools that are currently on probation. Schools currently on the probation list include State Barber and Hair Design College, Oklahoma City; Professional Massage Training Center, Springfield, Mo., Universal Career Community College, Puerto Rico; and Universal Technical College of Puerto Rico.

New rules

The U.S. Department of Education has proposed rules that would make these for-profit colleges and universities ineligible for government-backed student loans if fewer than 35 percent of students and former students are paying their loans. Schools would also be denied access to federal funds if graduates are spending more than 12 percent of their income to pay back student loans.

Meanwhile, many for-profit schools have begun making costly private student loans knowing in many cases that more than half of these loans will never be repaid, a report from the National Consumer Law Center (NCLC) finds.

Most of the schools started the institutional loan programs when third-party private student lenders began terminating their partnerships with for-profit schools following the credit crash.

The report said schools seem to view these “institutional loans” as loss leaders to keep the federal dollars flowing. Among other reasons, proprietary schools must show that at least 10% of revenues come from sources other than Department of Education federal student assistance.

Schools thus make unaffordable loans as a way of filling up the 10% category with “vapor” revenues derived from loans that will never be repaid, the report said.

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New Report Attempts to Bring Transparency to For-Profit Colleges

Posted by Kay Steiger-April 20th, 2011

Youth Today, a trade publication for youth service professionals, released an intensive report on for-profit colleges that attempts to do something that for-profit colleges sometimes don’t always do a great job of themselves: Offering a transparent profile of each school’s default rate, tuition, and stockholder information in one place.

The creators of Youth Today’s report [sub. req.] sifted through Department of Education data, as well as Securities and Exchange Commission filings for publicly traded schools, and requested information directly from the schools themselves. The authors even provide a repayment table to better help incoming students understand how much a loan will ultimately end up costing them.

The report is a step in the direction of making  higher education—and for-profit education particularly—more transparent and accountable for their student outcomes – a trend the education industry has often resisted.

Part of the problem is that for-profit schools tend to be some of the worst offenders when it comes to transparency. Simply pressuring schools to be more upfront about crude but crucial statistics like graduate employment rates and student loan default rates is one way students could make better decisions about which school to attend.

Of course, measures like default rates, graduation rates, and employment rates aren’t perfect. “There are numerous ways to game that system,” says American Enterprise Institute research fellow Andrew Kelly, citing some recent reports in the Chronicle of Higher Educationthat document consulting firms that aim to keep schools from having high default rates by setting students up with forbearance or other loan deferral methods. “No matter where you put that goal post, they’ll find ways” to manipulate the data, Kelly says at an event Youth Today held on Wednesday. Only three attendees came to learn about the report.

The Department of Education has proposed a rule known as gainful employment that would pull federal aid funding from schools that have too-high default rates. Secretary of Education Arne Duncan recently promised a finalized rule in the coming months.

“There are students who will default through no fault of the colleges, but [high default rates are] an indicator that something is wrong,” says Julie Morgan, a policy analyst with the Center for American Progress, the parent organization of Campus Progress.

Youth Today’s report, while a serious attempt to offer a comprehensive perspective on for-profit schools, is still lacking. The text-heavy pages and color-coded banners are best suited to industry insiders rather than students attempting to make decisions about where to invest in higher education. Youth Today also wants to charge $6 a copy for the report, but even such a nominal barrier could keep such important information from students who are considering these schools. Morgan suggests that such information should be available on for-profit schools’ websites and on forms they need to sign.

And while Youth Today’s report does a good job of comparing for-profit schools to each other, most often students are comparing a number of options, both for-profit and non-profit, when making decisions about where to attend higher education.

Still, such a report is yet another reminder that, while the battle over what to do with for-profit schools has largely been fought over regulations, it is also about providing clear and accessible information for the students so they can make the best decisions.

Kay Steiger is the editor of CampusProgress.org.

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Filed under 9.5 percent, 9.5 percent SAP, federal direct loans, FFELP, for-profit colleges, for-profit schools, PLUS, Stafford, student loan lenders, student loan program, student loan scandal, student loans, Uncategorized