Economy & Business, Politics

Biden Announces Massive Erasure of Student Debts

The Department of Education announced this week it will cancel $415 million in federal student loans by nearly 16,000 borrowers allegedly misled by for-profit colleges.

The borrowers, who attended DeVry University, ITT Technical Institute, Westwood College and the Minnesota School of Business/Globe University, will receive the relief through a legal provision known as borrower defense, which allows individuals to discharge some or all of their student loan debt if their school misled them or otherwise engaged in other misconduct.

“The department remains committed to giving borrowers discharges when the evidence shows their college violated the law and standards,” Education Secretary Miguel Cardona said in a statement Wednesday…

In total, the Biden administration has approved about $2 billion in loan forgiveness for more than 100,000 students allegedly defrauded by their schools. Read more…

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