WASHINGTON — A preliminary analysis by the Education Department says payments to students defrauded by for-profit colleges may be cut by about 60 percent under a plan to provide only partial loan forgiveness on some claims.

The agency has said it is discontinuing the Obama administration’s practice of fully wiping out the loans of defrauded Corinthian Colleges students under the so-called borrower defense rule. The department said some students will now get only partial loan forgiveness.

The estimate was in a document drafted last fall and viewed by The Associated Press. Officials looked at student loans forgiven in their entirety to determine the impact if only partial relief had been granted.

A department spokeswoman says the analysis is “not an official calculation” and that it’s too early to make any estimates.

 WAIT, BEFORE YOU GO…

If you're reading this, you probably already know that non-profit, independent journalism is under threat worldwide. Independent news sites are overshadowed by larger heavily funded mainstream media that inundate us with hype and noise that barely scratch the surface. We believe that our readers deserve to know the full story. Truthdig writers bravely dig beneath the headlines to give you thought-provoking, investigative reporting and analysis that tells you what’s really happening and who’s rolling up their sleeves to do something about it.

Like you, we believe a well-informed public that doesn’t have blind faith in the status quo can help change the world. Your contribution of as little as $5 monthly or $35 annually will make you a groundbreaking member and lays the foundation of our work.

SUPPORT TRUTHDIG
In this Article:
#department of education#education#student loans