These borrowers have student loans canceled



These August announcements mark the third and fourth wave of student debt write-offs since President Joe Biden took office. Overall, the Department of Education claims to have approved a debt cancellation of $ 9.5 billion in student loans in 2021 for 563,000 borrowers.

When it comes to writing off student debt, the Biden administration has gone further than previous administrations. But, by and large, this is still a trifle. Student loan borrowers owe a total of $ 1.7 trillion – yes, a trillion – in student loan debt.

But who exactly is eligible for the four rounds of 2021 student loan forgiveness? To answer this question, we updated our Student Loan Forgiveness Guide

Shortly after Education Secretary Miguel Cardona took over the US Department of Education this year, the agency quickly announced that it would cancel student debt of borrowers who approved “borrower protection until maturity“claims. Approved claims mean that the government determined that the borrower attended a school that was involved in fraudulent or illegal activities. Those schools were Corinthian Colleges, ITT Institute of Technology, and the American Career Institute.

At the time, about 72,000 borrowers with $ 1 billion in student loan debt had an approved claim. For more information on this round, go here

This summer, the Department of Education announced that it would approve borrower claims against 1,800 borrowers attending the Judicial Reporting Institute, Westwood College or Marinello Beauty Schools. It was found that these problematic programs were using deceptive methods. The Department of Education also announced that it will pay off $ 56 million in student loan arrears.

For more information on eligibility for this round, go here

Payment of the $ 5.8 billion loan balances will be “automatic”. The Department of Education will have access to the borrower’s Social Security Administration records to identify those on the disabled list. The agency will then repay the loans in September. More details, go here

More than 115,000 former students of the ITT Institute of Technology—which closed in 2016– learned that on Thursday they will see the student loan balances paid off.

Earlier this year, the Department of Education forgave many former ITT students, but not all former enrollments were insured. This final round forgives students who “did not receive a diploma or matriculation and left ITT on or after March 31, 2008”.

According to the Ministry of Education, these former students were attending school at a time when ITT tricked students into accepting “unaffordable private loans that were supposed to be a grant.”

To find out more about this round, go here


Source link