Biden administration cancels $ 55.6 million in student loan debt for fraud victims


The Biden administration is writing off $ 55.6 million in student loan debt for victims who were defrauded by three for-profit institutions.

The education department said in a statement on Friday that he canceled the debts of 1,800 borrowers who attended Westwood College, the Marinello Schools of Beauty and the Court Reporting Institute.

Of the canceled debt, the lion’s share – some $ 53 million – will go to borrowers who attended Westwood College, which closed in 2015.

The school, which had campuses across the country, is accused of having distorted the ability of students to transfer credits to another institution between 2002 and 2015. In addition, it is accused of misleading students. students who took his criminal justice program into believing that they would be able to find employment with various law enforcement agencies in Illinois.

Separately, the department has approved more than $ 2.2 million from 200 claimants who say they were defrauded in Marinello. The borrowers claimed that the school failed to teach them the key elements of a cosmetology program and that students were left for weeks or months without instructors.

Another debt of $ 340,000 was forgiven by 18 borrowers who attended the Court Reporting Institute. The agency says the majority of students were never able to complete the program, noting that only 2 to 6 percent of students graduated.

Debt is canceled as part of the Ministry of Education’s borrower defense program, which allows those who have been defrauded by institutions to write off their debts.

The Biden administration had already canceled $ 1.5 billion in debt for nearly 92,000 borrowers who claim to have been defrauded by the ITT Technical Institute and Corinthian College.

Education secretary Miguel CardonaMiguel CardonaPuerto Rico to receive nearly $ 1 billion in pandemic relief funds Warren blocks confirmation of Biden’s choice to push for student loan reforms said in a statement that the agency “will continue to do its part to review and approve borrower advocacy requests quickly and fairly so that borrowers get the help they need and deserve.”

“We also hope that these approvals serve as a warning to any institution engaging in similar behavior that this type of misrepresentation is unacceptable,” he said.

White House is under vocal pressure from the left to cancel large swathes of student loan debt, something President BidenJoe BidenJohn Kerry to Visit Moscow Officials to Discuss “Global Climate Ambition” Civil Rights Leaders Find Meeting with WH “Encouraging” Amid Voting Rights Battle Pentagon Considering Locations to Send Afghan interpreters as Biden promises evacuations by end of July MORE has so far hesitated to do so.

Leave A Reply

Your email address will not be published.