This spring, the U.S. Department of Education announced that it was discharging the federal student loans of 28,000 students who attended Marinello Beauty School. In taking such action, the department was following a rule that allows it to discharge any federal loans taken out by students who were deceived by their school. 1 The department found that the school misled students about the quality and content of programs; exploited students’ unpaid labor; failed to train students in key skills, such as how to cut hair; and left students without the skills to pass certification exams, find employment, and repay their loans. 2
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