New legislation being introduced by three Senators Richard Durbin of Illlinois, Jack Reed of Rhode Island and Elizabeth Warren are introducing a key piece of legislation aimed at punishing schools with high default rates. Apparently they will be making this a centerpiece of legislation in the coming year of 2014.
Reed entered a controversial language that would punish schools with a monetary penality in relation to their defaulted dollars.
They are proposing that CDR’s in excesss of 15 percent or higher would begin paying a penalty of 5 percent of the dollar value of the outstanding defaulted debt.
Wow! This is going to hit home with alot of schools that are in the upper teens and low twenties.
read more here….