Students ask federal government to erase their college debt
WASHINGTON- Almost 12,000 students are asking the federal government to forgive their college loan debt, asserting their school either closed or lied to them about job prospects.
The figure represents an unprecedented spike in what's called a "borrower's defense" claim following the collapse Corinthian Colleges for-profit college chain, which had become a symbol of fraud in higher education. Under higher education law, students who believe they are victims of fraud can apply to have their loans discharged.
Officials say they know of five or so such cases in the past 20 years; some 4,140 have been filed since the Education Department's June announcement that it would make the debt-relief process easier.
Officials say an additional 7,815 Corinthian students have filed claims for debt-relief because their school closed.