May 30, 2008
College Faces Penalties for Paying Students' Loans
A for-profit college in New York City faces possible expulsion from the federal government's system of subsidized student loans after allegedly paying off some of its own students' loans to help improve its default rating.
The college, Technical Career Institute, which is owned by EVCI Career Colleges Holding Corporation, has paid more than $440,000 to loan companies since October 2005 as part of the unauthorized strategy, according to the Education Department's inspector general. The
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