Student Loans Under federal sanctions, West Virginia colleges need $245m

graduation cap and cash roll, closeup

.CHARLESTON, W.Va. (AP) – State higher education officials say West Virginia’s public colleges need $245 million in the next month after U.S. education officials put sanctions on them for Title IV programs for federal student grants and loans.

Records obtained by The Charleston Gazette-Mail show state officials knew for months that if they were late submitting an audit of incoming federal money for a third-straight year, colleges would face sanctions.

State Higher Education Policy Commission Chancellor Paul Hill said officials may loan from the treasury and return it later.  He said larger schools have enough cash to avoid significant problems.

Higher Education Policy Commission spokeswoman Jessica Kennedy said the U.S. Department of Education usually gives schools the money.

Under sanctions, schools pay up front and request federal reimbursement. The sanctions will last five years.

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