The U.S. Government Is Collecting Student Loans It Promised to Forgive

Bloomberg: “The Obama administration has repeatedly promised that borrowers eligible to have their student loans cancelled would be reimbursed for ‘every penny.’ But for months, the Education Department has been actively working to collect on federal student debt owed by tens of thousands of former students at Corinthian Colleges Inc., which filed for bankruptcy in 2015 under a cloud of fraud investigations. It is clear that government officials, working under their own guidelines, have reason to believe at least some of these same debts should be forgiven. When companies have similarly hounded borrowers to repay debt without disclosing that borrowers do not owe it, they have been charged by federal and state regulators with violating the law.”

“The Obama administration’s moves underscore a basic fact about the officials who run the federal student loan program: Their job is to maximize collections, not assist borrowers. In fact, the same person—James W. Runcie, chief operating officer of the department’s student aid unit—directly oversees both collection and forgiveness.”

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