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Latest from FSA: FSA Looking to Include Loan Performance Outcomes in New College Ratings

January 13, 2015

President Obama has directed the Department of Education to develop and publish a new college ratings system by the 2015-16 school year that provides a clearer picture of a college’s value to students and families as they search for and select a school. The Department of Education recently released a draft of the framework for this new system.

One aspect of this framework that may be of particular interest to financial aid offices is loan performance outcomes. The Department of Education is looking to use metrics such as the percentage of students repaying their loans on time to help consumers weigh whether or not they will be able to handle their financial obligations after attending a specific school.

Other metrics being considered include:

  • Percentage of students receiving Pell
  • Expected family contribution gap
  • Family income quintiles
  • First-generation college status
  • Average net price
  • Net price by quintile
  • Completion rates
  • Transfer rates
  • Labor market success
  • Graduate school attendance

For a more in-depth look at the proposed college ratings system framework, please read this press release from the Department of Education: http://www.ed.gov/news/press-releases/public-feedback-college-ratings-framework.

This draft framework is available for public comment through February 17, 2015. To submit your feed back, submit this online form or email collegefeedback@ed.gov.

 

Kristin Tobias, Communications Coordinator, Nelnet

Kristin Tobias, Communications Coordinator, Nelnet

 

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