Obama Administration Opens Door for More Student-Debt Forgiveness
Federal officials acknowledged the potentially high cost of the policy. In the case of Corinthian alone, the Education Department said 350,000 Americans who owe roughly $3.5 billion in loans could be eligible for forgiveness. In all, Americans owe more than $1.2 trillion in outstanding student debt.
Federal officials declined to disclose the potential total amount of loans that could be eligible for forgiveness.
Education Secretary Arne Duncan said in a conference call with reporters that the administration is “determined to crack down on colleges that leave students with huge debt, worthless degrees and few job prospects.”
Under Secretary of Education Ted Mitchell said the agency realized the move could invite applications from across higher education, whether from community college students or law-school graduates. The agency said it would hire a “special master” to figure out many of the details, including what standards the department should use to determine whether a school had violated state law. The department also would likely hire additional personnel to handle the applications.
