The Biden administration decided to cancel student loan debts for 18,000 students defrauded by a for-profit institute. See how this can affect you – and how to deal with your college debt if your student loans are not waived. (iStock)
The US Department of Education, led by President Joe Biden, recently announced that the 18,000 students defrauded by the ITT Technical Institute will have their student loans canceled. In total, over $ 500 million worth of student debt has been canceled, an average of nearly $ 28,000 per borrower.
The move is part of the Borrower Defense Program, which provides loan repayment to students who feel misled by a college. To date, the Biden government has canceled $ 1.5 billion in student loans for approximately 90,000 borrowers under this program.
Former ITT students said the for-profit institute, which closed in 2016, misrepresented its employment prospects as well as credit transfer. The Department of Education found that the institute misrepresented the earning potential of graduating from ITT; In reality, ITT graduates said it was harder to find employment when their employment was included on a resume.
STUDENT LOAN REFINANCE RATES ARE BACK TO LOW LOW: HOW TO FIND YOUR PRICE
“Many of these borrowers have been waiting a long time for relief and we need to work quickly to make decisions for those whose claims are pending,” Education Minister Miguel Cardona said in a statement. “This work also underscores the need for ongoing accountability so that institutions will never again be able to commit this widespread deception.”
While the defrauded ITT graduate’s loans have been repaid, millions of other Americans are still having to repay their student loans. More comprehensive student loan cancellation measures are still out of reach. So if you are struggling to repay your college debt, don’t wait for your loan to be paid off. Instead, take advantage of record-low student loan refinancing rates to save money on your private student loans.
Here’s how to find out if student loan refinancing is right for you
Student loan refinancing can help some borrowers pay off their loans faster and save money with a lower interest rate, but it is not for everyone.
For example, it is not advisable to refinance federal student loans as it will cause you to lose government protections like income-based repayment and interest-free COVID-19 forbearance. It could even leave you ineligible if the federal government decides to cancel the student loan debt in the future.
However, student loan borrowers who have personal credit debt should consider refinancing while interest rates are at record lows. That way, you can lower your student loans or pay off your personal loans faster. Cancellation of the student loan does not apply to private loans, so there is no risk of losing benefits due to the refinancing. Credible’s online marketplace allows you to compare student loan refinancing rates with multiple lenders at the same time.
WITH REFI RATES FOR STUDENT LOANS NEAR RECORD LOWS, CALCULATE YOUR SAVINGS
Are you still not sure whether refinancing makes sense?
Refinancing student loans can save borrowers thousands of dollars over the course of loan repayment. It is important to weigh the pros and cons of this approach and be aware that it does not apply to each individual’s personal financial situation.
Those who refinanced their personal student loans with Credible for a shorter term saved an average of $ 17,344. Find out if student loan refinancing is a smart move for you by using a student loan payment calculator.
And if you still have questions, reach out to a seasoned Student Loan Consolidation Clerk at Credible to find out more.
BIDEN’S BUDGET EXCLUDES STUDENT LOANS. WHAT SHOULD YOU DO WITH UNIVERSITY DEBT?
Do you have a finance-related question but don’t know who to contact? Send an email to the credible money expert at moneyexpert@credible.com and your question could be answered by Credible in our Money Expert section.
source https://collegeeducationnewsllc.com/biden-administration-cancels-500m-of-student-loan-debt-this-is-who-qualifies/
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