Biden administration canceled another $ 55 million in student loans today, for a total of $ 1.5 billion in student loans canceled this way.
Here’s what you need to know – and what it means for your student loans.
The US Department of Education today announced that more students will benefit from a total cancellation of their student loans today. Here’s how to qualify
- $ 55.6 million student loan cancellation
- Over 1,800 student loan borrowers
- Total cancellation of the student loan at 100%
- based on the borrower’s defense against repayment demands
- has an impact on student loan borrowers who have attended three institutions, including Westwood College, Marinello Schools of Beauty, and Court Reporting Institute.
- With today’s student loan cancellation, Biden has now canceled over $ 1.5 billion in student loans due to borrowers’ defense against repayment, which has helped 92,000 student loan borrowers.
This is the first time since 2017 that the Department of Education has announced the approval of a borrower’s defense application for students who have attended an institution other than Corinthian Colleges, ITT Technical Institute or American Career Institute. .
“Today’s announcement continues the US Department of Education’s commitment to standing up for students that colleges have benefited from,” said US Secretary of Education Miguel Cardona. “The ministry will continue to do its part to review and approve borrower advocacy requests quickly and fairly so borrowers get the help they need and deserve.” We also hope that these approvals serve as a warning to any institution engaging in similar behavior that this type of misrepresentation is unacceptable. “
Why cancel a student loan?
Why did these student loan borrowers get their student loan canceled? Their claims are based on the borrower’s defense to repayment. The borrower’s defense against repayment is a federal regulation that began under the Obama administration that allows you to have a student loan canceled if you have been misled or defrauded by your college or university. . The borrower’s defense applies only to federal student loans. While the borrower’s defense includes direct loans, it does not include FFELP loans or Perkins loans. One of the reasons is that student loan cancellation doesn’t apply to everyone. However, the good news is that you can still qualify for the borrower’s repayment defense if you have FFELP or Perkins loans. How? ‘Or’ What? Consolidate your FFELP or Perkins loans into a direct consolidation loan. Contact your student loan manager for more details.
Student loan cancellation: what happened?
According to the Ministry of Education:
$ 53 million in student loan cancellations for 1,600 borrowers
First, from 2002 until it closed in 2015, the Department of Education found that all Westwood campuses engaged in widespread misrepresentation about students’ ability to transfer credits to other colleges and universities. Second, from 2004 to 2015, Westwood made false statements to students that his criminal justice program would lead to careers as a police officer in Illinois, particularly Chicago. However, the Chicago Police Department would not accept Westwood credits in their hiring process. The Education Department said the students were “worse” after attending Westwood.
Marinello Beauty Schools
$ 2.2 million student loan cancellations for 200 borrowers
From 2009 until its closure in 2016, the education department discovered that Marinello beauty schools had made substantial false claims about the education that would be offered on its campuses across the country. Although it is a beauty school, the students claimed that the school did not teach the basics of cosmetology, including how to cut hair. Education also found that Marinello left students without instructors for weeks or months, making it difficult to pass the necessary state licensing tests.
Institute of Court Reporting
$ 340,000 student loan cancellation for 18 borrowers
From 1998 until it closed in 2006, the Education Department found that the Court Reporting Institute had made substantial misstatements about how long it would take students to complete its court reporting program. Data reviewed by the Ministry showed that only 2% to 6% of students graduated and those who completed the program took significantly longer to do so than the institution claims.
Biden canceled $ 3 billion in student loans
Since taking office in January, Biden has canceled nearly $ 3 billion in student loans:
- Biden canceled $ 1 billion in student loans for 72,000 student loan borrowers.
- Biden canceled an additional $ 1.3 billion in student loans for 41,000 totally and permanently disabled borrowers.
- Biden has provided student loan relief to 1.1 million student loan borrowers who defaulted on their FFELP loans.
- Today, Biden canceled $ 500 million in student loan debt for 18,000 student loan borrowers under the Borrower’s Defense Against Student Loan Rule.
Student loan cancellation: next steps
Is this a game-changer for student loan cancellation? While this announcement impacts a small sample of the total 45 million student loan borrowers, the good news is that there will be more student loan cancellations. There are at least four ways Biden can cancel a student loan. There is also a lot of effort being made to help student loan borrowers get more student loan cancellations. First, Biden focused on targeted student loan cancellation to help certain groups of student loan borrowers obtain student loan relief. The borrower’s defense against repayment is just one example. Second, the Education Department is preparing a legal note for Biden that will assess Biden’s authority as president to write off student loan debt without further authorization from Congress. This could lead to large-scale student loan cancellation or other types of student loan cancellations, including student loan relief. Third, Democrats in Congress have proposed 5 changes to the cancellation of student loans. Fourth, the Department of Education has held hearings on student loans, which could change the future of student loan repayment and student loan cancellation. Fifth, Biden can extend the temporary forbearance of student loans beyond September 30, 2021.
If you are paying off student loans, make sure you know all of your student loan repayment options. If you qualify for a student loan cancellation, it may or may not cover all of your student loans. Here are some popular options: