Biden Cancels $ 1 Billion Student Loans



This story is evolving.

Biden administration cancels $ 1 billion in student loans.

Here’s what you need to know.

Student loans

In the ongoing student loan cancellation debate, at least some borrowers will receive student loan forgiveness. In a major announcement, the U.S. Department of Education will enact student loan cancellation for 72,000 student loan borrowers who previously had some student loans canceled but will now receive a full student loan cancellation. The Biden administration says that the Trump administration’s previous formula for scrapping student loans in cases of fraud or school closures, which often resulted in partial forgiveness of student loans, was unfair to student loan borrowers.

Under a federal law known as borrower repayment protection, borrowers can get a federal student loan cancellation if they attended a school that used fraudulent or illegal activities or suddenly closed. In 2016, the Obama administration issued new rules to protect student borrowers and receive student loan benefits. These rules existed as a form of consumer protection, because in the absence of these rules, student loan borrowers would still have to pay off student loans, even if they did not find paid work after attending schools like ITT or Corinthian colleges.


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