The U.S. Department of Education is starting a process to clarify how student borrowers who believe colleges have defrauded them can have their loan debts forgiven. The department outlined the forthcoming negotiated rule-making process in a notice, to be published in Thursday’s Federal Register.
Borrowers’ ability to raise a “defense to repayment” — a claim for loan forgiveness — has become more prominent in recent months with the demise of the for-profit Corinthian Colleges. In June, the Obama administration unveiled a plan to provide relief to thousands of former Corinthian students.
The rule-making process will not affect the Corinthian plan, according to the department.
Read more at The Chronicle of Higher Education: https://chronicle.com/blogs/ticker/education-dept-will-clarify-defrauded-borrowers-ability-to-seek-relief/103411
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