Betsy DeVos may stop forgiving all federal loans for students defrauded by for-profit colleges

Oct 29, 2017 by

WASHINGTON (AP) — The Education Department is considering only partially forgiving federal loans for students defrauded by for-profit colleges, according to department officials, abandoning the Obama administration’s policy of erasing that debt.

Under President Barack Obama, tens of thousands of students deceived by now-defunct for-profit schools had over $550 million in such loans canceled.

But President Donald Trump’s education secretary, Betsy DeVos, is working on a plan that could grant such students just partial relief, according to department officials. The department may look at the average earnings of students in similar programs and schools to determine how much debt to wipe away.

The officials were not authorized to publicly comment on the issue and spoke on condition of anonymity.

If DeVos goes ahead, the change could leave many students scrambling after expecting full loan forgiveness, based on the previous administration’s track record. It was not immediately clear how many students might be affected.

A department spokeswoman did not immediately respond to a request for comment Saturday.

But the Trump team has given hints of a new approach.

Source: Betsy DeVos may stop forgiving all federal loans for students defrauded by for-profit colleges

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