The Latest: DeVos may only partly forgive some student loans

Markets Associated Press

The Latest on the Education Department considering a change in policy on college loans. (all times local):

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6:35 p.m.

The Education Department is considering only partially forgiving federal loans for students defrauded by for-profit colleges. Department officials confirmed the change is being discussed. The change would abandon the Obama administration's policy of erasing that debt.

Under President Barack Obama, tens of thousands of students deceived by now-defunct for-profit schools had over $550 million in such loans canceled.

But President Donald Trump's education secretary, Betsy DeVos, is working on a plan that could grant such students just partial relief.

If DeVos goes ahead, the change could leave many students scrambling after expecting full loan forgiveness, based on the previous administration's track record. It's not immediately clear how many students might be affected.

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2:57 p.m.

The Associated Press has learned that the Education Department is considering only partially forgiving federal loans for students defrauded by for-profit-colleges.

That would mean abandoning the Obama administration's policy of fully erasing that debt.

Tens of thousands of students deceived by now-defunct for-profit schools had over $550 million in such loans canceled completely under President Barack Obama.

But Education Secretary Betsy DeVos is working on a plan that could grant such students just partial relief. That's according to department officials who were not authorized to publicly comment on the issue and spoke on condition of anonymity.

If DeVos goes ahead, the change could leave many students scrambling after expecting full loan forgiveness, based on the previous administration's track record. It's not immediately clear how many students might be affected.