20,000 For-Profit College Students Ask Education Dept. To Cancel Their Student Loans

20,000 For-Profit College Students Ask Education Dept. To Cancel Their Student Loans

As the fallout continues from the collapse of Corinthian Colleges Inc. — former operator of Everest University, WyoTech, and Heald College — the Department of Education is trying to sort through nearly 20,000 loan-forgiveness requests from former students who claim that CCI and other for-profit colleges misled them into taking out huge student loans. [More]


Legislation Would Require Private Student Loans Be Forgiven If Borrower Dies

Shortly after the death of their daughter, a New York couple’s grief was interrupted by a battle with an entity they never imagined: her private student loan lender. Inheriting a dead child’s student loan debt is a problem too many parents have had to face, and one that a new piece of legislation aims to eliminate. [More]


CFPB: Many Of The 33 Million American Workers Eligible For Loan Forgiveness Aren’t Using It

Are you working in a job that serves other Americans — in a school, hospital, city hall perhaps — while living saddled with student loan debt? You could be part of the more than 33 million workers eligible to have student loans forgiven, a large number of which aren’t even aware they can do so. The Consumer Financial Protection Bureau says loan forgiveness program are too confusing for many to take advantage of, leading to a large number of wasted opportunities. [More]

Loan Co-Signers Should Not Be On The Hook With The IRS If The Debt Is Forgiven

We’ve written numerous stories over the years about parents who co-signed student loans for their children and then were stuck with the payments when their child passed away or could not find employment. Sometimes lenders will choose to forgive that debt, but even then some are making a mistake that could continue to hurt the co-signer at tax time. [More]

(Chris Rief)

The CFPB Answers Your Student Loan Questions, Part 3: Defaulting And Loan Forgiveness

In the second set of questions and answers about student loans, the Consumer Financial Protection Bureau’s Student Loan Ombudsman Rohit Chopra made a few mentions of the various service-specific loan forgiveness programs out there. Here, he gets into more detail and responds to questions about the one topic no one ever hopes to face: default. [More]