Do You Qualify For $500 Million Of Student Loan Cancellation?

President Joe Biden (Photo by Drew Angerer / Getty Images)

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You may be wondering if you are eligible for a $ 500 million student loan cancellation.

Here’s what you need to know – and what it means for your student loans.

Student Loans

If you’ve been following the latest student loan cancellation news, you know that President Joe Biden has now canceled $ 3 billion in student loan terms. That includes $ 500 million in student loans announced this week. To qualify for $ 500 million student loan cancellation (and what to do if you don’t):

• The borrower’s plea to repay the student loan applies to you; and
• You attended the ITT Technical Institute (ITT), a for-profit college, and ITT misled you or engaged in misconduct; and for example,
• Participation in the ITT has affected or not improved your employment prospects. This includes any alleged false information ITT has given you about your employment prospects and your earnings potential after participating; or
• ITT deceived you about your ability to transfer credits from ITT to another college.

In total, approximately 18,000 student loan borrowers will qualify for a total of $ 500 million in total federal student loan repayment under this special student loan waiver per borrower against repayment of the student loan. With this recent student loan cancellation, the Biden government has now canceled $ 1.5 billion in student loan debt for repayment as part of borrower defense. Since there are 45 million student loan borrowers, this targeted student loan waiver of 18,000 borrowers may not apply to you. However, you can still apply for a student loan waiver as part of the borrower’s objection for repayment if you meet these requirements.

What is the borrower’s objection to repayment?

Defending the borrower on repayment is a federal arrangement that began under the Obama administration that allows you to obtain student loan cancellation if you have been misled or defrauded by your college or university.

Which student loans can be canceled for repayment as part of the borrower protection?

Borrower protection applies only to federal student loans, and specifically only to direct loans.

Is the Borrower’s Defense Against Student Loan Repayment Applicable to FFELP Loans or Perkins Loans?

No, the borrower’s plea for repayment does not apply directly to Federal Family Education Loan Program (FFELP) or Perkins loans. This is not a surprise as student loan cancellation does not apply to everyone. However, if you have FFELP or Perkins loans, you can group them together into a direct consolidation loan. Please contact your student loan service provider for more information. A direct consolidation loan is eligible for student loan repayment for full cancellation of the student loan under borrower protection.

How much student loan do I get?

If the repayment is approved as part of the borrower defense, you may receive a full cancellation of the student loan or a partial cancellation of your federal student loan. You can also remove all negative credit reports from your credit report and, if necessary, have your eligibility for state student aid restored.

How do you apply for the cancellation of the student loan?

You may be wondering: Has the student loan cancellation been canceled? It may feel like there hasn’t been a major cancellation of the student loan. However, you can apply for student loan termination by completing the Borrower’s Defense Application to Repay the Loan. The application is available from both the US Department of Education and your student loan broker. It takes about 30 minutes to fill out the application. You need your FSA card, your school name and your study program, your matriculation data and all documents to prove your application.

What are the requirements for canceling the student loan?

To get the student loan cancellation, you will need to provide evidence of:

• You borrowed federal student loans to go to college or university;
• You believe that your college or university has deliberately misled you or engaged in other misconduct;
• You have suffered specific financial damage as a result; and
• You can provide evidence that your college or university has violated a state law in relation to your student loans or the educational services it provides.

It is important to understand how to qualify for student loan cancellation. Some examples that might qualify you for student loan cancellation are: false promises made by your college or university about the cost of your education, school accreditation, employment prospects, credit transfer opportunities, or your school closed while you were enrolled. However, you cannot claim borrower protection if, for example, you didn’t like school or faculty, or didn’t get the job you wanted.

What if I have borrower defense questions?

If you have any questions about borrower defense, call the U.S. Department of Education’s Borrower Defense Hotline at 1-855-279-6207. Representatives are available Monday through Friday, 8:00 a.m. to 8:00 p.m. Eastern Time.

If you don’t qualify for borrower defense, there are other great options for student loan repayment too. Here are some smart options to consider so that you can save money:

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