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As the loan rejection trend began to take shape, Harvey and his colleagues brought the PPL issue to the attention of U.S. Secretary of Education Arne Duncan "to let him know the gravity of the situation." Harvey said Duncan said he understood the issue and "was on it."
The Department of Education has since begun reviewing hundreds of applications and has already notified many schools of overides of initial decisions to deny loans.
The surge in denials "did register on our minds," said Lynn Icono, director of financial aid at Delaware State. "More families were seeing more declines," she said. In recent weeks, Icono said, the university is seeing "more credit overrides," meaning loan applications that were initially denied are being reconsidered and approved.
Department of Education Press Secretary Justin Hamilton said the agency did indeed "strengthen" the criteria for obtaining Parent PLUS loans in a move to be "in keeping with industry standards. The criteria are used to determine whether a borrower can repay a loan.
Hamilton said the agency would not have a full picture on all of its loan volume until sometime in November. Meanwhile, the agency was giving several options to those whose applications were denied, he said. Applicants can simply submit the same application again, reapply with co-signers or seek to increase their federal Stafford loan, if they have one.
Meanwhile, some of the institutions affected have taken some steps on their own to help impacted students.
Howard University "successfully aided scores of students with appeals" on their Parent PLUS loan application denials, said University Spokeswoman Kerry-Ann Hamilton. The university also kicked into gear a program it launched last spring called "Bridging the Gap Student Aid Campaign." Its goal is an initial $25 million in unrestricted and endowed need-based funds that can be used to help worthy students "regardless of their ability to pay," Hamilton said.
Benedict College tapped into its resources to give students impacted by the PPL denials small scholarships and grants to help close with their newfound financial need. Delaware State has taken similar action, said Ms locono, offering some affected students scholarship aid packages that are a combination of grants scholarships and loans.
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Report: Black Colleges Continue to Reduce Student Loan Default Rates
undergraduate majors. Maintaining an appropriate level of peer recognition for professional graphic design work
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Obama does it again! When are Black people going to understand and appreciate the damage this “Black” President is doing to our communities? It's bad enough that many of us Black folks don't have a job, but now sending our kids home and denying them an 8-9% interest rate loan for their education? Shame on you Barack Obama and your Secretary of Education, Arne Duncan. I hope our people vote AGAINST you.
AngryBlackMan October 11, 2012 at 5:32 pm Reply
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