Loan forgiveness university of phoenix11/10/2023 ![]() ![]() As long as I am president, we will never stop fighting to deliver relief to borrowers who need it – like those who attended Ashford University,” Biden said in a statement. ![]() “My administration won’t stand for colleges taking advantage of hardworking students and borrowers. This student debt forgiveness program has been in place for decades and allows people to apply for debt relief if they believe their college misled or defrauded them. The Department of Education said Wednesday that it is canceling $72 million in federal student loan debt for more than 2,300 borrowers who attended the for-profit Ashford University in California.Īltogether, the Biden administration has approved the cancellation of more than $116 billion of student loan debt for over 3.4 million people – about 1.1 million of whom are borrowers who were misled by a for-profit college and granted relief under a program known as borrower defense to repayment. And when federal loan payments restart in January, an estimated 7.5 million borrowers will be brought out of default.Even though President Joe Biden’s student loan forgiveness program was blocked by the Supreme Court earlier this year, his administration is moving forward with more targeted student debt cancellations allowed under existing programs. Some of the biggest to date include $6 billion in forgiveness for defrauded Corinthian College borrowers, $6 billion for more than 300,000 borrowers who have a “total and permanent disability,” and $415 million for an estimated 16,000 borrowers defrauded by DeVry University, Westwood College, ITT Technical Institute, and other institutions.Īdditionally, almost 175,000 public servants have received forgiveness under a reformed Public Service Loan Forgiveness program. Since Biden took office, his administration has announced a number of targeted forgiveness efforts. 17, 2015, qualify for full loan forgiveness, estimated to total around $130 million. On Tuesday, the Department of Education announced its findings on Westwood College, reporting that the institution “engaged in widespread misrepresentations about the value of its credentials for attendees’ and graduates’ employment prospects.”Īll students-estimated to be 4,000 borrowers-who attended Westwood between Jan. Some of the schools listed in the settlement may be able to fight against this ruling-the Education Department has not investigated all of them for fraud.īut the government has documented many instances of fraud. ![]() Other student loan forgiveness efforts by the Biden administration If a borrower did not attend one of the schools on the settlement’s list, but submitted a loan discharge, the department will review their application to determine if they qualify for relief. Borrowers will also be refunded any payments made to the Education Department on those loans, and their credit reports will be updated.īorrowers will receive the relief within one year of the final effective date of the settlement agreement. If it is approved, all qualifying borrower defense applications pending as of June 22 will automatically receive federal loan discharge. The settlement allows borrowers who attended 153 mostly for-profit colleges to get a full and automatic cancellation of any federal student loans they took out to attend the “predatory” schools if they submitted a borrower defense to loan repayment application to the federal government before June 22, 2022. The latest round of targeted forgiveness is the result of the proposed settlement in Sweet v. ![]() To date, the administration has forgiven $34 billion in federal student loan debt, including $14.5 billion in discharges for borrowers whose colleges took advantage of them, according to the Department of Education. It’s part of broader efforts by the Biden administration to help the millions of Americans who are saddled with debt they can’t pay off. In fact, around 200,000 people who attended schools that defrauded them may soon qualify for an additional $6 billion in federal student loan forgiveness. Millions of Americans breathed a sigh of relief last week when President Joe Biden announced widespread student loan forgiveness for federal borrowers, totaling between $10,000 to $20,000, depending on how they financed school.īut other borrowers may not be aware that their entire federal loan balance might be canceled soon. ![]()
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