Students scammed by for-profit schools for loan forgiveness
Students who have been scammed by for-profit colleges will have their federal school loans wiped out, the Education department announced Thursday.
Why is this important: The change will wipe out approximately $ 1 billion in student loan debt for 72,000 borrowers who have filed claims, AP Reports.
- Student debts whose claims have already been approved will be cleared.
- The ministry will also review pending cases and reassess cases that have been refused.
- Students who received partial credits from these universities will also be reimbursed for any payments already made on loans, will be eligible again for federal student aid, and will have any negative ratings resulting from loan repayments withdrawn by the offices of credit.
What they say : “Careful examination of these claims and associated evidence has shown that these borrowers have been wronged, and we will give them a fresh start on their debt,” said Education Secretary Miguel Cardona, who is pushing to streamline the borrower relief.
Driving the news: Former Education Secretary Betsy DeVos revised the program to tighten debt cancellation during the Trump administration, Congress tried to reverse the changes last March, but former President Trump opposed his veto the measure.