The Obama administration, under pressure from Congressional Democrats and consumer advocates, is deciding whether to relieve the debt of some federal student loan borrowers who attended Corinthian Colleges.
Under Secretary of Education Ted Mitchell wrote to lawmakers last week that the department is "carefully considering the issue."
His letter comes several weeks after the government gave final approval to the sale of many of Corinthian’s campuses. The sale agreement included $480 million in forgiveness of private student loans. Federal regulators alleged that Corinthian pushed students into those private loans with false and misleading information about their likelihood of getting a job.
But the loans that Corinthian students owe to the federal government, which likely total more than half a billion dollars, weren’t addressed as part of the sale.
Read more at Inside Higher Ed: https://www.insidehighered.com/news/2015/03/05/us-weighs-whether-relieve-loan-debt-profit-colleges-student-borrowers