By Shahien Nasiripour. Federal law allows students who were defrauded by their colleges into taking out federal student loans to have their debts forgiven. The Obama administration has said repeatedly it will ensure aggrieved borrowers get this form of relief, a commitment that Education Undersecretary Ted Mitchell reiterated this week following the bankruptcy filing of troubled for-profit school operator Corinthian Colleges Inc. More...
How Ending the Two-Tiered Student-Loan System Would Help Struggling Borrowers
By Ben Miller. Defaulting on a student loan is not pleasant. It wrecks a borrower’s credit, puts her into the unpleasant world of debt collection, and can even result in wages or Social Security benefits being garnished. There are increasing calls to keep down student debt and to create more flexible payment plans to avoid default. More...