U.S. Students Permitted $3.5 Million Debt Relief
Recently, the U.S. Secretary of Education had promised that the loans of about 350 thousand students who were deceived into taking huge student loans for online courses by Corinthian colleges will be forgiven. This move by the U.S. Department of Education is a welcome one, though nothing of the sort had been done before.
According to The New York Times, it was on Monday that the Secretary of Education, Arne Duncan, declared that the Education Department will provide debt relief to of thousands of students who attended Corinthian Colleges. The Coranthain College was closed and filed for bankruptcy last month.
Mr. Duncan also said that the Education Department is planning to forgive the loans of all students defrauded by their colleges, even if they belonged to Coranthian colleges or elsewhere.
The officials of Education Department said that a special master will be appointed within three weeks to start the procedures for the relief.
When the debts of all Coranthian students will be forgiven, the total debt relief will amount to $3.5 billion.
The students who joined the online courses were given false statistics about their college placement rates and were promised with help for job searches. However, it never happened. The students ended up being unemployed, without proper degrees and a debt of $100 thousand as loans.
Student debt in the U.S. has doubled in the last ten years and it continues to rise. Therefore, the debt forgiveness is going to be a boon to the students.
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