The federal student loan forgiveness program established to refund borrowers who were defrauded by their schools has been put on hold until further notice, according to the Department of Education. This applies to Corinthian College students who were defrauded by the school’s deceptive advertising and false job placement rates. Approximately 15,000 student loan forgiveness claims from Corinthian students had been approved as of October 2016.
Here are the requirements for qualifying for a borrower defense federal loan discharge:
- If your school misled you in any way about your loans or education program;
- If your school violated certain state laws, such as consumer protection statutes or laws related to your loan or educational services.
Secretary of Education Betsy DeVos said on June 14 that last year’s expansion of the forgiveness rules “missed an opportunity to get it right.” Several Democratic senators are demanding answers and asking the Dept. of Education to provide detailed information regarding loan forgiveness applications and approvals for past students of Corinthian Colleges, along with two other failed for-profit college chains: ITT Technical Institute and American Career Institute.
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