California Seeks More Federal Regulation of Loan-Default ‘Manipulation’

The California Student Aid Commission, which since 2011 has barred Cal Grants to students at colleges where many borrowers have defaulted on federal student loans, is asking the U.S. Department of Education to better regulate default-rate "manipulation."

The California commission says it is concerned that some colleges have lowered their rates—and regained eligibility for Cal Grants—by employing tactics that "mask their poorly performing campuses" and add to the loan