Proposed student finance regulations may hamper small institutions | Brookings Institution

The Department of Education has proposed new rules requiring colleges to post letters of credit if they have ‘significant fluctuation’ in their Pell Grants or student loan awards. In their proposal, the Department of Education notes that 991 of 3590 private nonprofit and for-profit colleges had a change in student loan volume of 25% or more. Robert Kelchen discusses how using a metric based on percent change in aid awarded would disproportionately affect small institutions, regardless of actual financial responsibility.

Source: Proposed student finance regulations may hamper small institutions | Brookings Institution