Morehouse Blames Budget Cuts on Loan Denials
- Standards tightening for federal PLUS loans
- Education Department hears comments on PLUS loans, gainful employment and for-profit colleges
- U.S. should change PLUS loan program to protect borrowers and taxpayers (essay)
- New report asks policy makers to impose tighter standards on Parent PLUS Loans
- Obama's budget proposal would change student loan interest rates, boost science spending
Morehouse College will furlough faculty and staff and make budget cuts after an enrollment decline it says is attributable in part to increased denial rates on parent PLUS loans, The Atlanta Journal-Constitution reported Thursday. Loan denials went up this year after a change to underwriting standards cast a wider net for poor credit history, and the effects have been felt most acutely at historically black colleges. The Education Department says 95 percent of PLUS applicants at historically black colleges go on to finance their education in other ways, but Morehouse administrators told the newspaper that 125 students fewer than expected enrolled this year and it believes the new loan rules are at least partially to blame.