Dive Brief:
- The U.S. Department of Education releases a significant amount of information about colleges and universities in the name of transparency — but not when it comes to their financial risk.
- Inside Higher Ed reports the department will not release the names of institutions under restrictions that limit their access to federal student aid.
- Heightened cash monitoring has caused the downfall of multiple institutions since the federal government first instituted the restriction in the 1990s, often to the complete surprise of students, Inside Higher Ed reports.
Dive Insight:
The Department of Education has claimed to keep the names of institutions under heightened cash monitoring secret because making the information public would be too destructive to those institutions, according to Inside Higher Ed. It’s true, many students probably would choose a school whose finances have the faith of the federal government over one that doesn’t, especially because the vast majority of schools are in good enough standing to collect student aid dollars. The question, though, is whether the Department of Education is in place to protect students or the institutions claiming to serve them.