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Jewish School Isn’t Entitled |To Pell Grant Money In Escrow

NEW YORK (CN) - A Jewish school in New York is not entitled to $452,008 in federal grant money withheld in an escrow account, the Second Circuit ruled.

It reversed and remanded summary judgment for the Beth Medrash Eeyun Hatalmud, an institution devoted to Judaic and Rabbinical studies. The district court had ordered the government to release the money that was treated as a bond and placed in escrow while the institution unsuccessfully fought to stay in the Pell Grant Program. BMEH was not entitled to the money, the court concluded, because the school was ineligible for any federal loans based on a finding that its programs "were neither intended nor designed to prepare students gainful employment in a recognized occupation." See ruling in Medrash v. Spellings.

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