The Education Department helped 21 U.S. colleges avoid sanctions in the last two years, by adjusting their student loan default rates, according to a report Saturday.
The department can bar student access to federal loans and grants at colleges if those college students’ default rates go over 30 percent for three consecutive years, or 40 percent in one single year. By adjusting the default rate, federal officials give colleges a reprieve that preserves their ability to offer federal student aid they need to avoid closing, according to the Wall Street Journal report.
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