Department of Education to make college loan process easier for students
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.