Biden administration cancels $6 billion in debt for 200,000 college students

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Biden administration cancels $6 billion in debt for 200,000 college students

The Biden administration canceled $6 billion of federal student loan debt for about 200,000 borrowers who attended mostly for-profit colleges this week.

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

More than 68,000 borrowers who didn't attend eligible colleges will have their applications for relief fast tracked under the deal.

The lawsuit was originally filed in 2019 and argued that the Department of Education stalled the borrower defense process, which is how people apply for relief if they believe a college they attended made false advertising claims.

The director of the Project on Predatory Student Lending, Eileen Connor, represented the plaintiffs, celebrated the momentous proposed settlement on Thursday.

She said it will not only help with billions of dollars in debt cancellation for defrauded students, but it will also chart a borrower defense process that is fair, just, and efficient for future borrowers.

A hearing for a judge to give the final sign-off on the deal is scheduled for July 28.

The deal comes after the Biden administration announced that it would cancel $5.8 billion in debt for anyone who attended a Corinthian school.

Since the first days of the Biden administration, the progressive wing of the Democratic Party has been pushing the president to cancel $50,000 of student loan debt for every borrower.

Biden has resisted those calls, but the Washington Post reported last month that the White House is considering cancelling up to $10,000 in student debt for every borrower who makes less than $150,000 annually, or $300,000 for married couples.