Thirty-six Chicago-area trade schools and junior colleges, including three branches of the City Colleges of Chicago, could lose some federal financial aid or federally guaranteed loans for students because of high rates of defaulted student loans, the U.S. Department of Education announced Friday. The schools are among 1,200 post-secondary schools nationwide that may be dropped from one or more student aid programs because of high default rates by the students on their government loans.
Three branches of the City Colleges are on the lists, including Malcolm X College, 1900 W. Van Buren St., and Kennedy-King College, 6800 S. Wentworth Ave.
The third branch on the lists was unclear. The federal lists say,
”Chicago City-Wide College, 30 E. Lake St.,” but that is the address of the Harold Washington branch. City-Wide College is at 226 W. Jackson Blvd. The City Colleges have at least nine branches.
The confusion could not be immediately resolved.
But the City Colleges branches were not among the most troubled schools.
In the biggest trouble with the Department of Education were 121 schools nationwide, including seven in the Chicago area, that face automatic cutoff from federally guaranteed student loans ”for the current year and two additional years,” said William D. Hansen, assistant secretary for the Department of Education`s office of management and budget.
The loans include Stafford Loans, PLUS loans and Federal Supplemental Loans for Students, Hansen said.
The supplemental loans are available to graduate and professional students, to undergraduates who are on their own without parental support and to ”dependent undergraduates in exceptional circumstances.”
All the Chicago-area schools on the shorter list are private trade schools, with the exception of East West University, 816 S. Michigan Ave., which is a four-year private college.
Those schools may appeal to the Department of Education, but last year 75 percent of such appeals were denied, Hansen said.
The City Colleges branches were among 29 Chicago-area trade schools and junior colleges that may be deemed ineligible for all federal student aid programs, he said.
The Department of Education announcement said 558 schools nationwide would face a cutoff of all federal student aid program. But Hansen said it was unlikely that they would lose all federal student aid.
Hansen said the department intends to work with the 558 schools, including the City Colleges branches, in an effort to improve management of their student loan programs so they may remain eligible for federal student aid.
The 558 schools most likely will be declared ineligible for only the FSLS loans for one year, Hansen said.
City Colleges officials said the three branches would appeal.
The seven area schools facing almost automatic cutoff of eligibility for federal student loans for three years are:
Cannella School of Hair Design, 4269 S. Archer Ave.; Chicago Truck Driving School, 2235 W. 74th St.; East West University, 816 S. Michigan Ave.; PBS Training Center, 220 S. State St.; Taylor Business Institute, 36 S. State St.; Vogue Academy of Beauty Culture, 4925 W. Irving Park Rd.; John Amico`s School of Hair Design, 15301 S. Cicero Ave., Oak Forest.
The 29 Chicago-area schools that will lose eligibility for FSLS loans, known as supplemental student loans, for one year, but could face further sanctions are:
Paul`s Academy of Cosmetology, 7000 W. Cermak Rd.; American Technical College, 1900 E. 87th St.; Automotive Technical Institute, 5567 N. Elston Ave.; Cannella School of Hair Design, 2874 W. Cermak Rd.; Canella School of Hair Design, 4217 W. North Ave.; Charles Murdock Institute, 5090 W. Harrison St.; Chicago City-Wide College; Chicago Educational, 237 S. State St.; Chicago Truck Driving School, 2235 W. 74th St.; Kennedy-King College, 6800 S. Wentworth Ave.; Malcolm X College, 1900 W. Van Buren St.; Consumer Electronics Training Center, 6239-41 S. Western Ave.; Debbie`s School of Beauty Culture, 11034 S. Michigan; Mid-America School of Beauty Culture, 5506 W. Belmont Ave.; Moler Hairstyling College, 5840 W. Madison St.; Omar Rivas Academy of Barber Arts and Sciences, 5912 W. Roosevelt Rd.; PBS Training Center, 220 S. State St.; Riviera School of Beauty Culture, 6034 W. North Ave.; Rome Academy of Costmetology, 2828 N. Milwaukee Ave.; Sunny Hill Beauty School, 4830 N. Milwaukee Ave.; Taylor Business Institute, 36 S. State St.; Wilfred Academy of Hair & Beauty Culture, 2300 W. Lawrence Ave.; Bell Mar Beauty College, 5717 W. Cermak Rd., Cicero; Smith Business Automation School, 1313 E. Sibley Blvd., Dolton; Cannella School of Hair Design, 117 W. Chicago St., Elgin;
Metropolitan Business College, 2658 W. 95th St., Evergreen Park; John Amico`s School of Hair Design, 15301 S. Cicero Ave., Oak Forest; Selan`s System of Beauty Culture, 7229 W. Lake St., River Forest; State of the Art Beauty Academy, 3201 S. Union Ave., Steger.
