ECP NetHappenings 15 Schools With High Default rates get Sanctions

Sanctions

Schools with high default rates may lose their eligibility to participate in federal student aid programs. This year, 15 schools are subject to sanctions, including one public, one private, and 13 proprietary institutions.

These schools include:

  • DC – Washington – Bennett Career Institute
  • ID – Burley – Cosmetology School of Arts and Sciences
  • IL – Chicago – Larry’s Barber College
  • KY – Louisville – American College of Barbering
  • MO – Kansas City – Transformed Barber & Cosmetology Academy
  • ND – Bismarck – United Tribes Technical College
  • NJ – Cherry Hill – Harris School of Business
  • NY – Rochester – Sharp Edgez Barber Institute
  • PA – Lancaster – Champ’s Barber School
  • SC – Denmark – Denmark Technical College
  • TN – Memphis – Vibe Barber College
  • TX – Farmers Branch – PCCenter
  • TX – Grand Prairie – MT Training Center
  • TX – Dickinson – K&G 5 Star Barber College
  • WI – Beloit – First Class Cosmetology School

Eleven of these 15 schools are subject to a loss of eligibility based on a CDR of 40% or more for one year, while seven are subject to a loss of eligibility based on a CDR of 30% or more for three years. Three schools are subject to a loss of eligibility based on a CDR of 40% or more for one year and a rate of 30% or greater for three years. In certain circumstances, schools may avoid sanctions by submitting successful appeals.

Four of the 15 schools subject to sanctions in FY 2016 were subject to sanctions in FY 2015, including Champ’s Barber School, Larry’s Barber College, Sharp Edgez Barber Institute, and United Tribes Technical College.

All institutions with a default rate that is equal to or greater than 30% must establish a default prevention task force that prepares a plan to identify the factors causing the school’s CDR to exceed 30% and submit the plan to the Department.

https://www.ed.gov/news/press-releases/national-federal-student-loan-cohort-default-rate-continues-decline

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