Loading…
Thursday, October 02, 2014
Current Weather
Loading Current Weather....
Published: Thursday, 8/7/2014

Education Department to ease college loan rules

ASSOCIATED PRESS

WASHINGTON — The Department of Education is trying to make it easier for students with troubled credit histories to get college loans.

New rules would ease restrictions on college students seeking loans from the government’s direct loan program.

The change would let people get loans more easily even if they have about $2,000 in bad debt, and it would shorten the length of time their history of bad debt is scrutinized.

Currently, students with that much “adverse debt” are automatically denied, though they can appeal.

The department says about 370,000 more borrowers will clear the government’s credit check under the new standards.

The department expects to make the rules final by November, which means they would take effect for the fall of 2015.



Guidelines: Please keep your comments smart and civil. Don't attack other readers personally, and keep your language decent. If a comment violates these standards or our privacy statement or visitor's agreement, click the "X" in the upper right corner of the comment box to report abuse. To post comments, you must be a Facebook member. To find out more, please visit the FAQ.

Related stories