Biden Cancels $ 55 Million Student Loans



Biden’s administration canceled Other $ 55 million in student loans today.

Here’s what you need to know – and what does it mean for your student loans

Student loans

Today, the US Department of Education announced that more students today will receive a complete cancellation of the student loan. Here’s how to qualify

  • $ 55.6 Million Student Loan Cancellations
  • 1800+ student loan borrowers
  • 100% student loan cancellation
  • based on the protection of the borrower from repayment claims
  • affects student loan borrowers who have attended three institutions including Westwood College, Marinello Schools of Beauty, and the Court Accountability Institute.

Today’s announcement marks the first since 2017 that the Department of Education announced approval of a borrower protection lawsuit for students who attended an institution other than Corinthian Colleges, the ITT Institute of Technology, or the American Career Institute.

“Today’s announcement reaffirms the US Department of Education’s commitment to protecting students whose colleges have taken advantage of them,” said US Education Secretary Miguel Cardona. “The Department will continue to do its part to review and approve borrower protection requirements quickly and fairly to ensure that borrowers get the help they need and deserve. We also hope that these permissions will serve as a warning to any organization engaging in such behavior that such misrepresentation of information is unacceptable. ”

Why cancellation of a student loan?

Why have these student loan borrowers have their student loan canceled? Their claims are based on protecting the borrower from repayment. Borrower Repayment Protection is a federal ordinance passed under the Obama administration that allows you to cancel a student loan if you are cheated or cheated by your college or university. Borrower protection only applies to federal student loans. Although borrower protection includes direct loans, it does not include FFELP loans or Perkins loans. One of the reasons is that student loan cancellation does not apply to everyone… However, the good news is that you can still qualify for borrower protection until maturity. if you have FFELP or Perkins loans… How? Combine your FFELP or Perkins loans into a direct consolidation loan. Contact a Student Loan Service Specialist for details.

Student Loan Cancellation: What Happened

According to the education department:

Westwood College

Cancellation of $ 53 Million Student Loan for 1600 Borrowers

First, from 2002 until its closure in 2015, the Department of Education found that all Westwood campuses were involved in widespread distortions regarding students’ ability to transfer loans to other colleges and universities. Second, from 2004 to 2015, Westwood materially misrepresented to students that his criminal justice program would lead to police careers in Illinois, especially in Chicago. However, the Chicago Police Department did not accept Westwood’s loan for the job. The Department of Education said the students “got worse” after studying at Westwood.

Marinello Beauty Schools

Cancellation of $ 2.2 Million Student Loan for 200 Borrowers

From 2009 until its closure in 2016, the Department of Education found that Marinello’s beauty schools had materially misrepresented the training that would be offered on its campuses across the country. Despite the fact that this is a beauty school, the students argued that the school does not teach the basics of cosmetology, including a haircut. The Ministry of Education also concluded that Marinello left students without instructors for weeks or months, making it difficult to pass the required state licensing exams.

Institute of Judicial Accountability

Cancellation of $ 340,000 student loan for 18 borrowers

From 1998 until its closure in 2006, the Department of Education discovered that the Forensic Reporting Institute had materially misrepresented the time it would take for students to complete their forensic reporting program. Data analyzed by the Department showed that only 2-6% of students completed their studies, and those who completed the program took much longer than stated by the institution.

Biden Cancels $ 3 Billion Student Loans

After becoming president in January, Biden canceled nearly $ 3 billion in student loans:

  1. Biden canceled $ 1 billion student loans for 72,000 student loan borrowers.
  2. Biden canceled another $ 1.3 billion in student loans for 41,000 borrowers with full and permanent disabilities.
  3. Biden granted student loan exemptions to 1.1 million student loan borrowers who defaulted on their FFELP loan.
  4. Biden today canceled $ 500 million student loan debt for 18,000 student loan borrowers under the borrower protection of student loan repayment rules.

Student Loan Cancellation: Next Steps

There will be more student loan cancellations… There is at least Four Ways Biden Can Decide To Cancel A Student Loan… There are also many efforts being made to help student loan borrowers get more student loan waivers. First, Biden focused on targeted student loan cancellation to help specific groups of student loan borrowers obtain student loan relief. Protecting a borrower from repayment is just one example. Second, the Department of Education is preparing a legal memo to Biden that assess Biden’s power as president to cancel student loan debt without further permission from Congress. This can lead to widespread student loan cancellation or student loan forgiveness for other reasons, including student loan exemption. Third, the Democrats in Congress have proposed 5 changes to student loan cancellation… Fourth, the Department of Education held a hearing on student loans that could change the future of student loan repayment and student loan forgiveness.

If you are paying off student loans, make sure you know all the options. If you are eligible for a student loan cancellation, it may or may not cover all of your student loans. Popular options include:

Student loans: additional information

Will this change the rules of the game when canceling a student loan?

Biden May Extend Student Loan Benefit After Sept 30, But There Is One Serious Dilemma

Democrats propose 5 changes to abolish student loan

Supreme Court Denies Student Loan Cancellation – Here’s What Happened


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