A proposed Education Department rule governing student loan forgiveness is subjective and vague, critics say, and could lead to a rush of litigation for many colleges — both for-profit and nonprofit — and cost students and taxpayers billions. The rule is aimed at making it easier for students to get their debt erased because of alleged “misrepresentations” of a college’s performance in such areas as graduation rates and job placement. It was written largely a response to the collapse of Corinthian Colleges — a for-profit school sued by former students in 2015 who said they had been defrauded. The new 530-page draft regulation, set to go into effect next year, would establish a much broader...
↧
