Feds Consider Shift on Student Loan Forgiveness

The U.S. Education Department is considering plans to only offer partial federal loan forgiveness for students defrauded by for-profit colleges, according to agency officials, reported The Associated Press. The move would be a departure from the Obama administration's policy of erasing that debt, which resulted in roughly $550 million in canceled loans for tens of thousands of defrauded student borrowers.

The department's new potential plan would grant such students partial relief—possibly looking at the average earnings of students in similar programs and schools to determine how much debt to wipe away.

Student advocates criticized the reported move, arguing that the new plan is another sign of the Trump administration's close ties to for-profit colleges and that it is unfair to students, given that many of their classmates have had their loans completely canceled.


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The Associated Press