Just as Congress Eases Aid Rule, College Is Accused of Violating It

A New Jersey-based technical college faces the possibility of being declared ineligible for federal student aid at two of its seven campuses after they allegedly violated a law that requires colleges to obtain at least 10 percent of all revenues from nonfederal sources.

The Star Technical Institute violated the limit from 2004 through 2006 by relying on federal funds for 93 percent to 96 percent of its revenues at the campuses in New Jersey and Pennsylvania, the Department of

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