US students defrauded by colleges could see full debt relief
Al Jazeera
Defrauded students who received only partial relief from their federal student loan obligations could now see that entire debt wiped out, after the Biden administration rolled back a Trump-era formula.
Students who were defrauded by their colleges and received only partial relief from their federal loans could now see them fully cancelled, the administration of United States President Joe Biden announced Thursday, reversing a Trump administration policy. The change could lead to $1bn in loans being cancelled for 72,000 borrowers, all of whom attended for-profit schools, the US Department of Education said. “Borrowers deserve a simplified and fair path to relief when they have been harmed by their institution’s misconduct,” said Secretary of Education Miguel Cardona. “A close review of these claims and the associated evidence showed these borrowers have been harmed, and we will grant them a fresh start from their debt.”
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