New York to Betsy DeVos: Stop Delaying Student Loan Forgiveness
June 8, 2017
As published by The Times Union, on June 5, 2017.
New York Attorney General Eric T. Schneiderman joined 18 other state attorneys general Monday to demand the federal education department “stop delaying” a program that discharges loans for students who were defrauded by for-profit colleges.
In a letter to Educated Secretary Betsy DeVos dated Monday, the group said it has been fielding reports that suggest the review and approval of applications seeking debt relief has slowed or even halted.
Students have been reporting extensive delays, they said, and some are nearing or past the end of a yearlong forbearance period. About 27,000 students nationwide who have already been approved for loan forgiveness have yet to see their loans discharged.
The attorneys general expressed particular concern for former students of the for-profit chain Corinthian Colleges, which shut down in 2015 following allegations of deceptive marketing and lying to the government about its graduation rates. About 3000 New York residents who attended Corinthian schools are eligible for streamlined federal student loan cancellation.
“There is simply no reason for Secretary DeVos to delay student loan forgiveness for the thousands who were victimized by Corinthian Colleges,” Schneiderman said in a news release issued Monday. “We should be doing all we can to allow students to pursue their educations without the burden of crushing student loan debt. I call on Secretary DeVos to stop delaying this common-sense solution for those who were duped and ripped off by Corinthian.”