Students whose colleges misled them would have an easier time seeking loan forgiveness from the federal government under a series of regulatory proposals the U.S. Department of Education released Wednesday.
One long-awaited rule would apply to the borrower defense to repayment process, which discharges loans for defrauded students. The proposed changes would also address flaws in the beleaguered Public Service Loan Forgiveness program, which clears the debt of borrowers who work in fields like teaching or government jobs and make a decade’s worth of qualifying payments. PSLF has suffered from notorious administrative problems, leading to a fraction of eligible borrowers securing loan relief.
