Death Knell

In a letter obtained from the U.S. Department of Education today, New College independent alumni/ae were informed that advance funding for New College of California student loans has been curtailed, and that the school must now fund tuition from its own non-existent reserves and then seek reimbursement from the Department of Education. Reimbursement will depend on detailed proof that the school is no longer operating shell programs, faking enrollments, or using other devices to defraud the federal student loan program.

The August 6 letter from DOE to New College also spells out the criminal penalties for violating these regulations, which may yet land the New College trustees in an investigation by the U.S. Department of Justice.

~ by tbarj on August 10, 2007.