Biden administration clears student loan debt

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On Friday U.S. Department of Education announced it will pay off student loans totaling $ 55.6 million to students attending disadvantaged schools such as Westwood College, Marinello Schools of Beauty and the Institute of Legal Accountability.

“The Department will continue to contribute to reviewing and approving borrower protection requirements quickly and fairly to ensure that borrowers get the help they need and deserve. We also hope that these permits will serve as a warning to any institution engaging in such behavior that such misrepresentation is unacceptable, ”said US Education Secretary Miguel Cardona in a statement. issued a statement on friday

This is the third round of pardons from the Biden administration. At the end of March, the Ministry of Education announced that it would forgive $ 1 billion in student debt defrauded borrowers from students who studied ITT Institute of Technology Schools, Corinthian Colleges and the American Career Institute. In the same month, the Ministry of Education announced plans to forgive another $ 1.3 Billion Owned by Americans with Permanent Disabilities

But by and large, these student loan forgiveness rounds are pretty small. About $ 1.7 trillion –Yes, trillion with T – total outstanding student loan debt… Of this, more than $ 1.4 trillion are federal student loan arrears.

But as the Department of Education, staffed by Biden, continues to explore new options for forgiving student loans, the question is, is this setting the stage for wider debt write-offs?

Biden says he supports Congress passes forgiveness bill of up to $ 10,000 to each student loan borrower… However, earlier this year, Biden made it very clear that he did not support the $ 50,000 per student forgiveness. telling the press, “I won’t let that happen.” But that doesn’t stop members of his own party from calling on him for mass forgiveness through a decree. Some Democratic lawmakers are interested in taking this path, given that forgiveness could be blocked by Republicans or moderate Democrats in the US Senate.

What gives hope to progressive activists? At the request of the White House, the Minister of Education announced this spring he will be actively exploring whether the executive has the legal authority to pay off huge amounts of student loan debt. It is unclear if this report is complete.

This story was originally featured on Fortune.com



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