The Obama administration has announced it will forgive federal student loans owed by Americans who can prove their schools broke a state law, such as false advertising, fraudulent recruiting or other deception, to lure them to apply and borrow funds.
The move, which could potentially involve billions of dollars, is designed to grant debt relief to former students of now-bankrupt Corinthian Colleges (OTCPK:COCOQ), which lied to prospective students about its graduates' job success. The forgiveness push, though, will likely stretch far beyond the institution. http://seekingalpha.com/news/2568446-government-opens-door-to-more-student-debt-forgiveness?uprof=82&dr=1#email_link