Biden Administration Agrees to Cancel $6 Billion in Student Loans 2022

[↤ 𝔻𝕒𝕣𝕜 ℕ𝕖𝕠 ↦]

The U.S. Department of Education has agreed to forgive nearly $ 6 billion in student loans for about 200,000 students who claim to have been deceived by most for-profit schools, many of which are no longer available.

The agreement is part of a proposed settlement in Sweet v. Cardon, which began with seven students who accused former Education Minister Betsy DeVos in 2019. The plaintiffs claim that the Ministry of Education ignored or wrongly rejected their requests for student debt assistance. At the time, DeVos criticized the federal government's efforts to forgive the debt and rejected it as a "free money" gift. The settlement will repeat the 128,000 debt rejections issued during the denial of the Trump administration, which the judge involved in the case described as "disruptive Kafkaesque". More than 150 schools are involved (see the list here), including some that are still ongoing, such as the University of Phoenix and DeVry University.

The agreement has yet to be approved by a federal judge. Minister of Education Miguel Cardona stated in a statement the preliminary result. "We are pleased to work with the plaintiffs to reach an agreement that will provide billions of dollars in automatic relief to approximately 200,000 creditors, and we believe that the plaintiffs' claims will be resolved in a manner that is fair and equitable to all parties.". "

Earlier this month, the Biden administration announced that it had forgiven $ 5.8 billion in student debt related to Corinthian Colleges, a for-profit education chain that was closed in 2015 on allegations of fraud and mismanagement.

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