Biden administration cancels $1.5 billion of student loan debt

Student Loan Adoption: President Biden’s Attitude on This Issue

President Joe Biden is considering how the US could handle student debt. Here he is on the subject.

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• The Department of Education announced Friday that it had cut another $ 55.6 million in student loans.
• The Biden government has now waived $ 1.5 billion in student loans.

The Department of Education canceled an additional $ 55.6 million in student loan debt for 1,800 students who fell victim to for-profit college fraud, bringing the total amount of student loan debt canceled by the Biden administration to $ 1.5 billion.

“Today’s announcement continues the US Department of Education’s commitment to advocating for students whose colleges they have taken advantage of,” Education Secretary Miguel Cardona said in the department’s statement released Friday.

The final loan termination is for students who have attended Westwood College, Marinello Schools of Beauty, and the Court Reporting Institute. This marks the first time since 2017 that the department has granted credit waivers to students who have attended schools other than Corinthian Colleges, ITT Technical Institute, and American Career Institute.

More: 64 Democrats urge Biden to extend student loan payment hiatus

“Today’s action continues the efforts of the Biden administration to secure the defense of borrowers and other targeted loan cancellation, forgiveness and discharge programs that provide relief to students and borrowers,” the department said.

Borrower Defense is a federal regulation by the Department of Education that allows federal borrowers to seek forgiveness for their loans if they have been scammed by a college or university.

With the additional 1,800 students, the Biden administration canceled student loans for almost 92,000 people. The $ 1.5 billion canceled loan debt is an attempt by the Biden government to address the backlog of waivers left by the previous government.

“The Department will continue to do its part to quickly and fairly screen and approve borrower defense claims so that borrowers can get the relief they need and deserve. We also hope that these approvals serve as a warning to all institutions that display similar behavior that this type of misrepresentation is unacceptable, “added Cardona.

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Some Democrats are pushing for more and wider student loans.

More than 60 Democrats sent a letter to Biden on June 23, requesting him to extend the payment and interest hiatus on federal student loans, stating that the hiatus was hugely easing the burden on borrowers and families during the pandemic and was “a significant challenge.” would represent ”. when finished.

The Democrats also previously urged Biden to provide $ 50,000 in student loans per borrower, which he wouldn’t, stating that he would prefer to invest the money in early childhood education.

Will this be “forgiven instead of using this money to provide money for the early education of young children from disadvantaged backgrounds?” said Biden during a CNN town hall.

source https://collegeeducationnewsllc.com/biden-administration-cancels-1-5-billion-of-student-loan-debt/