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U.S. to Forgive Federal Loans of Corinthian College Students
The New York Times: In a move against what he called “the ethics of payday lending” in higher education, Secretary of Education Arne Duncan announced on Monday that the Department of Education would forgive the federal loans of tens of thousands of students who attended Corinthian Colleges, a for-profit college company that closed and filed for bankruptcy last month amid widespread charges of fraud.
Mr. Duncan also said the department planned to develop a process to allow any students — from Corinthian or elsewhere — to be forgiven their loans if they had been defrauded by their college.
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