Partial Relief for Defrauded (Student Loan) Borrowers (Corinthian Colleges)

[ucbalumnus]

https://www.insidehighered.com/news/2017/12/20/education-department-sets-standard-partial-relief-defrauded-borrowers

@Andrew Kreighbaum in Inside Higher Ed

Education Department officials today announced a plan to grant partial debt relief to defrauded student borrowers based on the earnings of graduates who attended a particular program of study.

It’s a significant departure for the department, which under the Obama administration had granted full relief to borrowers, such as the thousands of former Corinthian Colleges students who sought to discharge their student loans after the collapse of the for-profit chain in 2015. It’s also the first clear indication of how the Trump administration and Betsy DeVos, the education secretary, who had criticized the department’s approach under Obama, plan to handle debt-relief claims.

Department officials said the new policy will specifically address findings for former Corinthian students. The same analysis for partial relief will be used for borrowers who attended other programs going forward, depending on the number of claims from a given institution.