Department of Education to Establish Student Loan Forgiveness Process

In a move that could have far reaching implications for millions of American struggling to pay off student debt, the Department of Education is beginning to establish a program of loan forgiveness.

BuzzFeed reports that the development of the process was made public at the end of a press release about a $30 million dollar fine for Corinthian College. That for-profit college and others have been the target of lawsuits and government action because of their failure to provide students with the skills necessary to get a job.

The Department of Education may have also been motivated in part by the fact that a number of people with debt to for-profit universities have said they will not pay it. They are demanding their debt be forgiven. BuzzFeed notes that 250 former students of Corinthians have joined the struggle.

The Department of Education said that more information about the process will be made available in the coming weeks.

The effort to fight Corinthians is being led by an Occupy affiliated group called the Debt Collective. The Debt Collective previously led an effort called the Rolling Jubilee, which purchased the debt of students who couldn't pay their loans. After acquiring the debt, Rolling Jubilee simply forgave it. To date, the initiative has resulted in debt forgiveness of nearly $32 million.