News Column

House Passes Hahn Amendment to Expose Risky Student Loans

July 24, 2014

WASHINGTON, July 24 -- Rep. Janice Hahn, D-Calif. (44th CD), issued the following news release:

Today, the U.S. House of Representatives passed Congresswoman Janice Hahn's (CA-44) amendment to H.R. 4984, "The Empowering Students Through Enhanced Financial Counseling Act." The amendment will provide students with accurate information about schools with high student loan default rates, including for-profit colleges, before they enroll.

"Many for-profit colleges, like Corinthian Colleges Inc., have some of the highest student loan default rates in the nation. However, students are often unaware of this risk," said Congresswoman Hahn. "My amendment ensures students have accurate information about schools whose graduates have a higher percentage of student loan default."

Hahn's amendment will provide students applying for a federal loan with the latest national student loan default rate to compare it with the school's. For example, students considering attending a for-profit school with a 20% student loan default rate will see that rate is nearly double the national rate.

"This will allow students to better determine whether an institution has a record of delivering the quality education they deserve," said Congresswoman Hahn. "Too many students in my district and around the country know the burden of student loan debt all too well. Providing students with all of the information will give them a better chance of being able to repay their loan and build a successful future."

96% of students starting at a for-profit college take out federal student loans, compared to just 13% at community colleges. Although for-profit schools enroll just 10-13% of students, they account for 47% of all student loan defaults.

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Source: Targeted News Service

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