Alumni perks? These colleges are suing grads over unpaid loans3/7/2013
With so many young graduates unable to pay back their student loans, schools are finding themselves forced to take strong action. And by strong action, we mean Yale, University of Pennsylvania and George Washington University are all suing graduates over defaulted Perkins Loans. Unlike other student loans, Perkins Loans are designated for students with the highest financial need and are not administered by the government, but by the colleges themselves. The money paid back by graduates is recycled into new loans for current high-need students. Federal law requires that the colleges collect the money and, it seems, suing has become their last resort. We're guessing that these grads might have a few choice words for the Alumni Office when they get calls asking for donations. [Source]
Do you think the school is right to sue their graduates?