OFFICIALS LEGISLATION INTEREST GROUPS PUBLIC STATEMENTS COMMITTEES VETOES

Durbin, Blumenthal Statement on ED Decision to Grant Relief to Over 1,300 Students Following Collapse of Corinthian Colleges

Statement

Date: Dec. 3, 2015
Location: Washington, DC
Issues: Higher Education Government Budget and Spending

U.S. Senators Dick Durbin (D-IL) and Richard Blumenthal (D-CT) today called the Department of Education's approval of more than $28 million in federal student loan debt relief of 1,312 students of former Heald College -- which was part of the collapsed Corinthian Colleges, Inc. system --evidence of progress for students. To accompany today's relief, the Department of Treasury issued guidance that ensures federal debt relief for Corinthian students will not be considered taxable income.

"We appreciate today's assurance from the Department of Treasury that Corinthian students will not face a tax bill for federal student loan debt relief. Anything else would be unfair," said the Senators. "The Department of Education's approval of relief today is welcome news for some 1,300 former Heald students, but there are thousands more across the country who deserve the same relief. We encourage the Department to step up the pace and scope of its Corinthian debt relief efforts to give those students the relief they deserve under the law now."


Source
arrow_upward