Biden forgives $130 million in student debt for borrowers who attended CollegeAmerica
On Tuesday, July 25th, President Joe Biden announced the forgiveness plan of $130 million in student debt for 7,400 borrowers who attended the now-defunct CollegeAmerica, a for-profit college in Colorado. This means 7400 students will get relief from their student debt.
During his 2020 campaign, Biden promised to cancel $10,000 of student loan debt per borrower. But has not followed through on that promise yet. The plan is part of Mr. Joe Biden’s broader effort to address the student loan crisis.
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Reports say Mr. Biden said he is fully committed to solving the student-loan crisis and asked Congress to pass legislation to forgive more student-loan debt.
The loan relief, which will automatically apply to students enrolled at CollegeAmerica’s Colorado locations between January 1, 2006, and July 1, 2020, is due to the college closing in 2020 due to allegations of misleading students about their careers. Or we can say Student Fraudulent. Comes into view Prospects and loans, CBS News reported.
The US Department of Education said CollegeAmerica’s parent company, the Center for Excellence in Higher Education, misrepresented its graduates’ salaries, employment rates, and terms of private loans.
The Biden administration has approved $1.1 billion in debt relief for 14.7 million student loan borrowers “whose colleges took advantage of them or suddenly closed,” Biden said.
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Despite legal setbacks, this debt relief announcement is part of the White House’s ongoing efforts to alleviate the burden of student debt.
The move follows a Supreme Court decision to invalidate the Biden administration’s plan for broad-based student loan forgiveness, which would have wiped out up to $20,000 in debt for 40 million borrowers. Loan payments are set to resume in October after a three-year series gap.
The $130 million student loan forgiveness plan is the first time Biden has used his executive authority to cancel student loan debt. This plan is being implemented through the Education Department.
Some student loan borrowers and advocates have praised the plan but have also been criticized by others. Some critics have said the plan doesn’t go far enough, while others have said it’s unfair to borrowers who attended other for-profit colleges that weren’t closed.
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