Why People with Student Debt are Refusing to Repay It | CNBC
Sandy Nurse doesn’t see why she needs to be $120,000 in debt “just for trying to improve my understanding of the world.” And so, after a decade of struggling to repay her student loans, she plans to stop trying. She hopes others will join her, too, in a national strike against the country’s outstanding student loan debt, which is marching toward $1.7 trillion.
Muddied Picture for Defrauded Borrowers | Inside Higher Ed
Democrats in the U.S. House of Representatives were able to pass a measure last week expressing opposition to Education Secretary Betsy DeVos’s borrower-defense rule. But because of politics and both ongoing and upcoming legal battles, the vote did little to clear up what will happen to students who are asking for their loans to be discharged because they were defrauded by colleges.
House votes to make it easier for scammed borrowers to cancel student loans | MarketWatch
Federal lawmakers voted Thursday to block Education Department rules that would make it harder for scammed students to wipe away loans from shuttered schools. The Democrat-controlled U.S. House of Representatives passed a measure that would halt rules slated for implementation in July and reinstate Obama administration-era regulations on how to deal with the debt loads of students with useless degrees.
Former Students of Defunct ITT Tech Receive $95.1 Million Loan Relief | Wall Street Journal
WASHINGTON—The Education Department is providing loan relief to some 7,800 former students of the ITT Technical Institute, with debts totaling $95.1 million being forgiven by the government years after the giant for-profit school chain closed. The department said that it has identified 7,878 former students of ITT Tech as eligible for a program in which loans are discharged automatically within three years of a school closure. Of those borrowers who attended the school, 7,697 had received loan forgiveness as of Jan. 3.
Defrauded college students will no longer be taxed on their canceled loans | Washington Post
Student loan borrowers whose education debt has been canceled because their college closed or engaged in fraud will no longer face a tax bill, relief that arrives as applications for forgiveness continue to grow. On Wednesday, the Internal Revenue Service issued guidance shielding borrowers from having their discharged federal and private loans treated as taxable income. The measure is effective for education loans canceled on or after Jan. 1, 2016. Anyone affected by the new policy may claim a credit or refund for an overpayment of taxes.
Legislators Are Trying to Block Devos’ Rule on Student Loan Forgiveness—Here’s What You Need to Know | Newsweek
The House of Representatives will vote on a resolution that could stop Education Secretary Betsy DeVos’ borrower defense rule from going into effect, and supporters of the measure say it’s time for legislators to choose a side. Senators will now have a chance to go on the record: Are you with the students or the predatory industry that defrauded them with worthless degrees and a lifetime of debt?” Senator Dick Durbin said in a statement introducing the resolution in September.
Elizabeth Warren Says She Would Eliminate Student Debt On Day One Of Her Presidency | HuffPost
Sen. Elizabeth Warren (D-Mass.) has said that she would wipe out student loan debt for a vast majority of the nation’s borrowers. On Tuesday, she unveiled a plan to do it starting day one of her presidency.
Corinthian Colleges Students Want Education Dept. to Face Additional Sanctions for Violating a Court Order | Washington Post
Former Corinthian Colleges students are asking a federal judge to impose higher fines against the Education Department after the agency disclosed it pursued scores of additional borrowers for debt collection in violation of a court order.
Betsy DeVos: Income to Decide Education Loan Fraud Forgiveness | Ask the Truth
Overburdened by education loan is a common narrative associated with almost every other student in the US, but what seems tough, is about to get tougher. As per the new plan unveiled by the US Education Department, students who are cheated by their colleges will receive full loan forgiveness, only if they end up earning far less than their peers.
Betsy DeVos Forced Students Defrauded by For-Profit Colleges to Repay Loans | Truthout
Education Secretary Betsy DeVos overruled career staff at the department’s Borrower Defense Unit, deciding to force student borrowers to partially pay back their loans even though they had been defrauded by for-profit colleges, according to documents obtained by NPR.