Biden administration cancels $ 1.5 billion student loan debt
- The Education Department announced on Friday the cancellation of additional student loan debt of $ 55.6 million.
- The Biden administration has now written off a $ 1.5 billion student loan debt.
The Department of Education canceled an additional $ 55.6 million student loan debt to 1,800 fraudulent students at commercial colleges, bringing the total student loan debt canceled by the Biden administration to 1.5 billion dollars. I did.
“Today’s announcement continues the commitment of the US Department of Education that universities stand up for students who use them,” Education Secretary Miguel Cardona said in a statement on Friday.
The latest loan cancellations are for students attending Westwood College, Marinello School of Beauty and the Court Reporting Institute. For the first time since 2017, it approved a loan exemption for students attending schools other than Corinthian College, ITT Technical Institute, and American Career Institute.
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“Today’s actions continue the Biden administration’s efforts to ensure that borrower’s defense and other targeted loan cancellation, forgiveness, and indemnity programs provide relief to students and borrowers. ” According to a press release from the ministry.
The Borrower’s Defense is a federal regulation of the Department of Education that gives a federal student loan borrower the opportunity to ask for forgiveness if he is duped by a university.
With 1,800 additional students, the Biden administration canceled nearly 92,000 student loans. The canceled $ 1.5 billion loan debt is an attempt by the Biden administration to deal with the pending reset requests left by the previous administration.
âThe ministry will continue to play a role in the prompt and fair review and approval of borrower’s defense requests so that the borrower can receive the assistance it needs and deserves. These approvals will do the same. We hope that this kind of misrepresentation will serve as an unacceptable warning to our agencies, âadded Cardona.
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Some Democrats are asking forgiveness for a wider range of student loans.
More than 60 Democrats sent a letter to Biden on June 23, urging them to extend federal student loan payments and interest suspensions, which during the pandemic brought immeasurable relief to borrowers and families. He provided and said he “presents a significant challenge”. Once finished.
The Democratic Party previously asked Biden to pledge a $ 50,000 student loan per borrower, but he said he wouldn’t and wanted to invest in early childhood education.
âIs it permissible, rather than spending this money, to provide money for the early education of toddlers from disadvantaged situations? Biden told CNN mayor.