Student-loan borrowers who were defrauded by their colleges would have clearer paths to loan forgiveness — and the federal government would be more likely to recover its losses on the debt — under changes being proposed by the Education Department.
The changes, which a panel of negotiators will take up on Wednesday as part of a rule-making process that began last month, would create a new federal standard for judging borrowers' appeals for debt relief and for determining how much forgiveness they should receive. The department’s proposal also suggests several warning signs that could serve as "triggers" requiring colleges to submit letters of credit to the department.
Read more at The Chronicle of Higher Education: http://chronicle.com/article/Education-Dept-Seeks-to-Clear/235331