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The proposed reforms will remove banks from the equation and return financialaid administration to public institutions, as the US did under Obama’s 2011 reforms to federal student loans. However, the anticipated efficiency from bank involvement has not materialised, with only 55% of borrowers keeping up with payments.
That 2011 guidance enabled the emergence over the last decade of an entire industry of companies known as online program management firms, or OPMs. “We must carefully weigh students’ interests against the interests of taxpayers and institutions,” Mitchell said.
Paying the Price: College Costs, FinancialAid, and the Betrayal of the American Dream. The Road Ahead for America's Colleges & Universities. Oxford University Press. Armstrong, E. and Hamilton, L. Paying for the Party: How College Maintains Inequality. Harvard University Press. and Roksa, J. University of Chicago Press.
Finally, there is ultra-wealthy Arthur Keiser and his Keiser University, whose 2011 conversion from for-profit to non-profit was comparable to Carl Barney and CEHE: a sale of the for-profit school owned by Keiser, at a remarkably high valuation, to a non-profit controlled by Keiser.
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