Trump Administration Undermined Student Debt Relief Unit While Claims Mounted, Watchdog Finds

"As thousands of applications for student debt forgiveness poured into the U.S. Education Department, the Trump administration cut the staff working on the claims and ordered a halt to an overhaul of the system, according to the agency’s inspector general," The Washington Post reports. 

"The result: Claims lingered month after month.

A letter from the agency watchdog to Sen. Richard J. Durbin (D-Ill.), obtained Wednesday by The Washington Post, sheds light on the Education Department’s controversial handling of more than 100,000 debt relief claims submitted by defrauded student loan borrowers.

The unit charged with sifting through applications began developing protocols to simplify the process in January 2017. But James Manning, then an acting undersecretary, directed the unit to stop, according to the letter.

Education Department staff wanted to create more categories to sort the allegations made by former Corinthian College students, who constituted the lion’s share of applications. Manning quashed that plan and halted the entire approval system, arguing that the new administration needed more time to review existing polices."

NASFAA's "Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.


Publication Date: 6/18/2018

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