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Yale, Penn, George Washington sue former students for unpaid Perkins loans

Students defaulted on nearly $1 billion in loans in the year ending June 2011

A handful of schools across the country that gave out loans to financially needy students are now suing those students for not paying them back in a timely manner.

According to Bloomberg, schools including Yale University, the University of Pennsylvania and George Washington University have sued former students for defaulting on their Perkins loans, which are federal student loans earmarked for students with extraordinary financial hardship. In sum, students defaulted on $964 million in Perkins loans in the year ending June 2011, which is a 20 percent jump from 2006.

Ashley Post

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