Biden administration cancels $6 billion in student loan debt for 200,000 defrauded borrowers

The Biden administration has agreed to cancel an estimated $6 billion in federal student loan debt for about 200,000 borrowers who have claimed they were defrauded by their college.

The administration had previously approved $25 billion in loan forgiveness for 1.3 million borrowers. Around 43 million Americans have federal student loan debt.

More than 150 institutions are covered by the agreement, including DeVry University, the University of Phoenix, and the recently shut down ITT Technical Institute.

Under the terms of the agreement, the petitions for relief of an additional 68,000 borrowers who did not attend universities that qualified will be expedited.

Many of the borrowers who will be impacted by the new deal have been waiting years for the Department of Education to process their claims in accordance with a law known as the “borrower defense to repayment.”

It enables borrowers to apply for federal student loan relief if they feel their college misled them, frequently by overstating job placement rates or the ability to transfer courses.

The case was initially filed in 2019, and it claimed that the Department of Education had purposefully slowed down the borrower defense procedure, which is how people can petition for relief if they think a college they attended made misleading statements in its advertising.

The “momentous proposed settlement” was praised on Thursday by Eileen Connor, the head of the Project on Predatory Student Lending, which represented the plaintiffs.

She added in a statement, “It will not only help secure billions of dollars in debt cancellation for defrauded students, but charts a borrower defense process that is fair, just, and efficient for future borrowers.”

On July 28, a judge will hold a hearing to grant the agreement his or her final approval.

6 Responses

  1. “Students” should have done their “homework” prior to being misled by a school / college and then being defrauded. Now I get the honor, along with other hard working American workers, to foot the bill. Those involved at the schools / colleges need to be put behind bars for a while, and think about what they did.

  2. Is this jackass biden going to fork over the 6 billion from his own pocket to let these free loaders off the hook. These people got themselves into debt, so why should hard working families who are struggling to stay afloat have to foot the bill for these whining creeps who take no responsibility for their own debts. Decent people who have integrity and honor pay their own debt’s and will not shift their bills to others.
    This biden creep is out to destroy the hard working American family and try to enslave the people of this nation. He is sick, and so are those who will not pay their own debts that they themselves have incurred on their own. Pitiful leeches and lowlife slugs.

  3. Instead of removing this A-hole from office, actually he should have his A-hole removed. It’s so damn obvious he’s out to destroy the country I can’t believe he’s still there coming up with one stupid plan after another while the rest of his morons go along with it. I know there’s something that can be done when someone in that position acts as irresponsible as these idiots have. It’s this combat veterans opinion this moron isn’t representing America. So obviously he’s incompetent. And has this idiot ever actually laid out and truly explain to the American people just how his master plan is supposed to actually work?. NO! Because it’s obvious he’s got nothing and soon so will the whole country. Illegitimate is the only answer I can come up with!

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