U.S. Education Dept Proposes New Student Debt Forgiveness Rules

US Education Dept Proposes New Student Debt Forgiveness Rules

Defrauded students would have their loans forgiven; new rules would also bar mandatory arbitration clauses

In what could lead to a stunning victory for students defrauded by mercernary and predatory “for-profit” colleges, the U.S. Department of Education has released proposed rules that would forgive student loans in situations where colleges committed fraud and other misconduct. There has been a wave of lawsuits and judgments recently where so-called “fraudster colleges” are beginning to be held accountable for their improper and illegal conduct in forcing sudents into crippling student loan debt, often via deceptive manipulations, outrageous missed-class and missed-exam fees, and false promises of post-graduate employment success via wildly distorted alumni job rates. [Read more…]