Almost all student loan fraud claims involve for-profit colleges, study finds

Students who attended for-profit colleges filed more than 98% of the requests for student loan forgiveness alleging fraud by their schools, according to an analysis of Education Department data published Thursday.

News Story (NATIONAL)

Associated Press (AP)
November 9, 2017

Tags: For-profit college, Student Loan Forgiveness

Organizations mentioned/involved: Harvard Law School


The study by the Century Foundation represents the most thorough analysis to date of the nearly 100,000 loan forgiveness claims known as borrower defense received by the agency over the last two decades and paints an alarming picture of the state of for-profit higher education in America.

The report comes as Education Secretary Betsy DeVos faces criticism for halting two Obama-era regulations that would have added protections for students. Review of tens of thousands of claims has stalled, and the department is considering abandoning the practice of full loan cancellation in favor of partial forgiveness. Student advocates point to the Trump administration’s ties to the for-profit industry and accuse DeVos of putting industry over students.