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The Biden administration cancels $ 6 billion in student loan debt for 200,000 borrowers

Written by Javed Iqbal

The Biden administration reached an agreement this week to cancel $ 6 billion in federal student loan debt for about 200,000 borrowers who mostly went to for-profit colleges.

The agreement covers more than 150 schools, including DeVry University, the University of Phoenix and the recently closed ITT Technical Institute.

Another 68,000 borrowers who did not attend eligible colleges will have their emergency aid applications quickly tracked under the agreement.

Forgiveness of student loans

Activists hold signs as they attend a student loan forgiveness meeting on Pennsylvania Avenue and 17th Street near the White House on April 27, 2022 in Washington, DC. (Anna Moneymaker / Getty Images / Getty Images)

The lawsuit was originally filed in 2019, arguing that the Department of Education deliberately stopped the borrower defense process, which is how people apply for exemption if they believe a college they went to made false advertising claims.

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Eileen Connor, the director of the Project on Predatory Student Lending, who represented the plaintiffs, celebrated the “immediate proposed settlement” Thursday.

“It will not only help secure billions of dollars in debt forgiveness for deceived students, but map out a borrower defense process that is fair, equitable and effective for future borrowers,” she said in a statement.

A hearing for a judge to give the final signing of the agreement is scheduled for July 28.

President Biden

President Biden will speak in the Eastern Room of the White House in Washington, Tuesday, April 5, 2022. (AP Photo / Carolyn Kaster / AP Newsroom)

The deal comes weeks after the Biden administration announced it would erase about $ 5.8 billion in debt for everyone who went to a Corinthian school.

Since the early days of the Biden administration, the progressive wing of the Democratic Party has pressured the president to cancel $ 50,000 in student loan debt for each borrower.

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The bite has so far resisted the callbut the Washington Post reported last month that the White House is considering canceling up to $ 10,000 in student debt for each borrower earning less than $ 150,000 annually, or $ 300,000 in total for married couples.

The Associated Press contributed to this report.

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Javed Iqbal

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