Biden Has Now Cancelled $1.5 Billion Of Student Loans This Way

President Joe Biden (Photo by Scott Olson / Getty Images)

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The Biden government canceled an additional $ 55 million in student loans today, bringing the total to $ 1.5 billion in student loans canceled this way.

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

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Student Loans

The U.S. Department of Education announced today that more students are receiving full student loan cancellation today. How to qualify

• $ 55.6 million student loan cancellation
• 1,800+ student loan borrowers
• 100% complete cancellation of student loan
• due to the borrower’s objection to repayment claims
• affects student loan borrowers who have attended three institutions including Westwood College, Marinello Schools of Beauty, and the Court Reporting Institute.
• With today’s student loan cancellation, Biden has now canceled more than $ 1.5 billion in student loans due to defense of the borrower pending repayment, which has helped 92,000 student loan borrowers.

This is the first time since 2017 that the Department of Education has announced approval of a borrower defense claim for students who have attended an institution other than Corinthian Colleges, ITT Technical Institute, or American Career Institute.

“Today’s announcement continues the US Department of Education’s commitment to advocating for students whose colleges they have taken advantage of,” said US Secretary of Education Miguel Cardona. “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 acting in a similar way that this type of misrepresentation is unacceptable. “

Why cancel the student loan?

Why Did These Student Loan Borrowers Get Student Loan Cancellation? Your claims are based on the borrower’s plea for repayment. Defending the borrower on repayment is a federal arrangement that began under the Obama administration that allows you to get the student loan cancellation if you have been misled or defrauded by your college or university. Borrower’s defense only applies to federal student loans. While borrower defense includes direct loans, it does not include FFELP loans or Perkins loans. One reason for this is that student loan cancellation does not apply to everyone. However, the good news is that you can still qualify for borrower defense for repayment if you have FFELP or Perkins loans. How? Consolidate your FFELP or Perkins loans into a direct consolidation loan. For more information, please contact your student loan service provider.

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Termination of the student loan: what happened?

According to the Ministry of Education:

Westwood College

$ 53 million student loan cancellation for 1,600 borrowers

First, from 2002 until its closure in 2015, the Department of Education found that all of Westwood’s campuses had widespread misrepresentations about students’ ability to transfer credits to other colleges and universities. Second, from 2004 to 2015, Westwood made significant misrepresentations to students that his criminal justice program would lead to careers as a police officer in Illinois, particularly Chicago. However, the Chicago Police Department did not accept Westwood credits in their recruitment process. The Department of Education said the students were “worse off” after visiting Westwood.

Marinello beauty schools

$ 2.2 million student loan cancellation for 200 borrowers

From 2009 until its closure in 2016, the Ministry of Education found that the Marinello Schools of Beauty were grossly misrepresenting the classes that would be offered at its locations across the country. Although it is a beauty school, the students claimed that the school did not teach the basics of cosmetics, including haircutting. The training also concluded that Marinello left students without an instructor for weeks or months, making it difficult to pass the required state entrance exams.

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Institute for Court Reporting

$ 340,000 Student Loan Cancellation for 18 Borrowers

From 1998 until its closure in 2006, the Department of Education found that the Court Reporting Institute had made significant misstatements about the time it would take students to complete its court reporting program. The data verified by the department showed that only 2% -6% of students graduated, and those who completed the program took much longer than the institution claimed.

Biden has canceled $ 3 billion in student loans

Since becoming president in January, Biden has now canceled nearly $ 3 billion in student loans:

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1. Biden canceled $ 1 billion in student loans for 72,000 borrowers.
2. Biden canceled an additional $ 1.3 billion in student loans for 41,000 borrowers with total and permanent disabilities.
3. Biden provided student loan relief to 1.1 million student borrowers who defaulted on their FFELP loans.
4. Today, Biden canceled $ 500 million in student loan debt for 18,000 student loan borrowers under the borrower defense policy of student loan repayment.

Cancellation of student loan: the next steps

Is this a game changer for student loan termination? While this announcement impacts a small cross section of the 45 million total student loan borrowers, the good news is that there will be more student loan cancellations. There are at least four ways Biden can get the student loan canceled. There are also several efforts being made to increase student loan cancellations from student loan borrowers. First, Biden has focused on targeted student loan cancellation to help certain groups of student loan borrowers obtain student loan relief. The borrower’s objection to repayment is just one example. Second, the Department of Education is preparing a legal memo to Biden assessing Biden’s authority as president to cancel student loan debt without further approval from Congress. This could lead to widespread student loan cancellation or other types of student loan issuance, including student loan facilitation. Third, the Democrats in Congress have proposed five changes to student loan cancellation. Fourth, the Department of Education held hearings on student loans that could change the future of student loan repayment and student loan forgiveness. Fifth, Biden can extend the temporary deferral of student loans beyond September 30, 2021.

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When paying off student loans, make sure that you know all of the options for paying off the student loan. If you qualify for the student loan cancellation, it may or may not cover all of your student loans. Here are some popular options:

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Student Loans: Read More

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source https://collegeeducationnewsllc.com/biden-has-now-cancelled-1-5-billion-of-student-loans-this-way/