Student loan forgiveness is not a sure thing under a new plan

Source: MGN Online

WASHINGTON (AP) - The Education Department is abandoning the Obama administration's practice of wiping out the loans for all students who were swindled by the now-defunct Corinthian college chain.

Under President Barack Obama, tens of thousands of students deceived by the for-profit school had more than $550 million in student loans canceled in full.

But Education Secretary Betsy DeVos announced Wednesday she is putting a new process in place that she says will be more efficient. The department will now look at average income in order to determine the value of a student's education. Then it will decide whether to forgive the loan partially or in full.

Eileen Connor, a litigator at Harvard University's Project on Predatory Student Lending, called the decision "unlawful and arbitrary."



 
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