U.S. News
Biden administration cancels $6 billion student debt for defrauded borrowers
WHAT YOU NEED TO KNOW:
- The Biden administration is canceling about $6 billion in federal student debt of borrowers defrauded by their schools.
- The Education Department agreed to cancel 100 percent of all loan balances, refund prior loan payments and repair credit histories for about 200,000 borrowers.
- The plaintiffs sued the Education Department in 2018 because it was no longer issuing any decisions on borrower defense applications.
The Biden administration said Thursday that it is canceling $6 billion in federal loans for roughly 200,000 borrowers who claim they were defrauded by their schools.
The announcement comes as the Education Department has made moves in recent months to provide defrauded borrowers with debt relief and as the Biden administration weighs broader plans to cancel student debt.
“We are pleased to have worked with plaintiffs to reach an agreement that will deliver billions of dollars of automatic relief to approximately 200,000 borrowers and that we believe will resolve plaintiffs’ claims in a manner that is fair and equitable for all parties,” Education Secretary Miguel Cardona said in a statement Thursday.
The Education Department will cancel loans for students who studied at one of more than 150 schools, many of which are for-profit and vocational programs and have gone out of business, according to the New York Times.
The plaintiffs in the case, Sweet v. DeVos (now Sweet v. Cardona), had submitted “borrower defense” applications to cancel their federal student loan debt because they were defrauded by their schools. They sued the Education Department in 2018 because it was no longer issuing any decisions on borrower defense applications.
The lawsuit challenged the way the Education Department dealt with these applications, making reference to “delays in issuing final decisions” under former Education Secretary Betsy DeVos, and the “denial of certain applications starting in December 2019.”
The department said that the former students should receive relief due to “strong indicia regarding substantial misconducted by the listed schools, whether credibly alleged or in some instances proven, and the high rate of class members with applications related to the listed schools.”
The court filing states that the decision calls for instant relief for about 200,000 former students,
Source: CBS News
moosegringo
June 27, 2022 at 7:16 am
More liberal whiners complaining because they don’t know how to get a job and provide for themselves.
Karl Beilstein
June 27, 2022 at 7:19 am
This will be paid for by the tax payers. biden pays off nothing!!!
Richard Keepin
June 27, 2022 at 9:33 am
My thoughts exactly
Bob Page
June 27, 2022 at 7:51 am
At this rate we will be Greece before that idiot Biden gets put out of office and we all know how Greece is doing. Apparently the Demorats have found another way to buy votes.
CandygramForMongo
June 27, 2022 at 8:43 am
All the politicians kids college debt has been wiped away……..now they can enter than 6 figure job with a clean slate. American taxpayer is about to get bent over and 6 Billion inches is about to be rectally inserted! Expect colleges to raise their tuition to offset the loss.
Gary
June 27, 2022 at 4:59 pm
Why can’t be class action sue the administration for all the chaos and pain they are doing to us. They don’t listen to us; their the domestic terrorists !
Alfred Kreps
June 27, 2022 at 2:20 pm
Biden is not capable of making good decisions. Giving away 6 million of taxpayer money to buy votes is, in my opinion, fraud.
Everett
June 27, 2022 at 5:11 pm
Well what di you expect from a dunce-cap wearing, communist fascist democrat?? If they can’t get any votes from their VOTER FRAUD schemes, they gotta come up with something else!!! Just look at the hundreds of American and Afghan lives he threw under the bus, and the $billions$ of taxpayer money in military equipment he deserted in Afghanistan. The Democrats only fix problems they cause with MORE problems………and they like throwing enormous amounts of money we don’t have, at problems that don’t exist, for solutions that don’t work!!