Forbes.com

GAO Report Should Trigger Rethink of Accountability in Higher Education - Commentary

September 22, 2017

Contributor Preston Cooper writes:  For all private colleges that receive student aid funds from the federal government, the Department of Education calculates a measure of “financial responsibility,” intended to identify which schools might be in choppy financial waters and thus at risk of closure. But the financial responsibility score formula rewards rather than penalizes colleges for borrowing, so long as the debt they take on is long-term. That creates strange incentives for a college with a middling score.

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