Problems with Student Loan Forgiveness and For-Profit Colleges
Student loan debt is an enormous problem in the Chicago area and across the country. There are certain loan forgiveness programs that some debtors can rely upon if they meet the necessary requirements. In numerous cases of debtors who were defrauded by for-profit schools, a federal loan forgiveness program was supposed to come to the rescue. However, according to a recent article in The New York Times , that “government program meant to forgive the federal loans of cheated students has all but stopped functioning.” In short, tens of thousands of borrowers seeking relief from deceptive lending tactics under a “borrower defense” program are not getting the relief they were promised. Claims for Loan Forgiveness are “In Limbo” The student loan borrowers at the center of the article are those who assert that they “were victims of fraud, left with useless degrees and crushing debt.” Some of those borrowers went to Corinthian Colleges, a name that many consumers now associa...