Education Dept. Readies Debt-Forgiveness Plan for Ex-Corinthian Students
As the Education Department prepares to unveil its plan to provide loan forgiveness to borrowers who attended the defunct Corinthian Colleges, consumer advocates are amplifying their calls for blanket relief. In a pair of petitions sent on Tuesday, 50 consumer groups and unions asked the department to automatically cancel the debt of a broad group of students rather than requiring each student to prove he or she was a victim of fraud. They argue that the agency, which last month fined Corinthian $30 million for allegedly misrepresenting job-placement rates, has a duty to discharge the debt of all borrowers who were misled by the company.