Statement From the Project on Predatory Student Lending on Treasury, IRS Expanding Tax Relief for Borrowers with Canceled Student Loans | Press Release
January 16, 2020
Statement From the Project on Predatory Student Lending on Treasury, IRS Expanding Tax Relief for Borrowers with Canceled Student Loans
BOSTON – Today, the Treasury announced that it would provide tax relief for student loan borrowers who have had their loans discharged as a result of their school’s misconduct or because their school closed.
The following is a statement from Toby Merrill, Director of the Project on Predatory Student Lending.
“We commend the Treasury Department for acknowledging that students who have been defrauded by their school or experienced an abrupt school closure should not experience additional financial harm, and do not recognize income from the cancellation of these bogus debts. These loans should never have been made in the first place, and it’s a step in the right direction to ensure students do not suffer tax consequences after receiving loan relief.”
About the Project on Predatory Student Lending
Established in 2012, the Project on Predatory Student Lending represents former students of predatory for-profit colleges. Its mission is to litigate to make it legally and financially impossible for federally-funded predatory schools to cheat students.
The Project has brought a wide variety of cases on behalf of former students of for-profit colleges. It has sued the federal Department of Education for its failures to meet its legal obligation to police this industry and stop the perpetration and collection of fraudulent student loan debt.