The Day – Defrauded College Students Can Get Full Federal Loan Forgiveness Under New Policy

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The Biden administration’s new policy will allow federal student loans to be fully vacated to borrowers defrauded by their colleges.

According to a press release from the office of US Representative Joe Courtney, the policy is a departure from the practice of the administration of former President Donald Trump, “which adopted a formula whereby defrauded students could receive only partial help. Instead, Deputy Education Minister Miguel Cardona will believe that defrauded borrowers are entitled to 100 percent compensation unless evidence to the contrary is presented, ”the press release said.

The shift could affect Southeastern Connecticut residents. The now defunct Ridley-Lowell School of Commerce, located in New London, suddenly closed in 2018. He has offered certifications in dentistry and medicine, beauty and electrical work on the New London and Danbury campuses. A spokesman for the school at the time said it was closed due to “serious financial and operational problems.”

Courtney said in a press release that the closure of the Ridley-Lowell School caused financial damage to students.

President Joe “The Biden Executive Order creates the presumption of 100% firing of students who were robbed of schools that forced them to borrow for programs that were closed without warning or clearly distorted the value of the proposed curriculum,” Courtney said in a press release. “In Connecticut, commercial schools such as ITT Tech and Ridley-Lowell in New London closed abruptly in 2016 and 2018, respectively, leaving students without degrees or certificates and thousands of dollars in student loan debt. In addition to the recent extension by the Biden administration of the “pause” in payments on student loans until January 2022, this is another step towards alleviating the situation of borrowers on student loans. “

To date, during Biden’s tenure, students have canceled more than $ 1.5 billion in debt for more than 90,000 borrowers defrauded by commercial schools.

In 2018, Courtney stated that the U.S. Department of Education would help students who attended Ridley-Lowell. The department’s website provides information on topics such as obtaining official transcripts, student loan options, and contacting student loan service specialists.

Courtney, a member of the House Education and Human Resources Committee, wrote to then-Secretary of Education, Betsy DeVos, asking for action following the closure of the Ridley-Lowell case.

The school, which was located at the corner of Bank and Howard Streets in New London, also operated in Danbury, New York and Rhode Island. About 150 students were enrolled in the Connecticut offices.

“Many Ridley-Lowell students have used federal student loans and grants to pay for their tuition, and it is imperative that we provide them with the resources they need to make the right choices about what to do next,” Courtney said in a statement. “I am delighted that the Department (of Education) is moving quickly to exercise its statutory mandate to protect both taxpayers and students who believe in this school’s promise to receive a certificate that will provide paid employment.”

s.spinella@theday.com



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