States Ask Education Secretary to Move Forward on Loan Forgiveness for Corinthian College Students

Federal education loans can be forgiven if schools used deceptive practices to convince students to enroll

States Ask Education Secretary to Move Forward on Loan Forgiveness for Corinthian College Students
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June 5, 2017

Attorneys General for 19 states and the District of Columbia have written to Secretary of Education Betsy DeVos asking her to move forward with the loan forgiveness process for former Corinthian College students.

Under the Education Department's Borrower Defense program, federal education loans can be forgiven if schools used deceptive practices to convince students to enroll. Delays in the program have left tens of thousands of former Corinthian College students in limbo regarding their federal student loans.

"Relieving these hard-working Americans of their fraud-induced student debt will free them to participate more fully in their local economies, or even continue their educations with reputable schools," stated the letter written by the Attorneys General.

The letter claimed that the delays are occurring in reviewing and approving the students' loan cancellation applications. And more than 27,000 students whose applications were approved have not yet had their loans forgiven.

As lawmakers have noted, the delay could result in students incurring more costs. The students have a forbearance period of 12 months on their loans, and once that time is up, they will have to begin making monthly payments again even though the loans should have been discharged.

The Attorneys General requested that DeVos explain what the Education Department is doing to catch up on the backlog of applications and give a timeframe for when the student loans will be forgiven. They also requested that DeVos end the application process for automatically forgiving all eligible loans because the Department has already determined that the students are eligible.

"We should be doing all we can to allow students to pursue their educations without the burden of crushing student loan debt," New York Attorney General Eric Schneiderman stated. "I call on Secretary DeVos to stop delaying this common-sense solution for those who were duped and ripped off by Corinthian."