HomeFinanceBiden administration erases $130 million in student loans for 7,400 borrowers -...

Biden administration erases $130 million in student loans for 7,400 borrowers – UnlistedNews

President Joe Biden speaks on July 25, 2023.

Samuel Corum/Sipa/Bloomberg via Getty Images

The White House on Tuesday forgave $130 million in student debt to 7,400 borrowers who attended CollegeAmerica, a now-defunct institution in Colorado that officials say misled borrowers about their loans and career prospects.

These borrowers “were lied to, cheated and saddled with mountains of debt,” President Joe Biden said in a statement announcing the cancellation of the debt.

The action affects students who attended the school’s Colorado locations between January 1, 2006, and July 1, 2020, the year the school closed its campuses, Colorado Attorney General Phil Weiser said. He got required the Biden administration last year to erase CollegeAmerica’s student debt.

More on Personal Finance:
Is Biden’s $39 Billion Student Loan Forgiveness Action Legal?
When Student Debt Payments Restart, Your Loan Type Will Make a Big Difference
Can employers be a firewall for student loan borrowers?

The US Department of Education found that CollegeAmerica’s parent company, the Center for Excellence in Higher Education, “made widespread misrepresentations about the salaries and employment rates of its graduates, the programs it offered and the terms of a private loan product it offered,” Weiser said in a statement. statement Tuesday.

Biden’s action follows a Supreme Court ruling last month that struck down a White House plan to forgive up to $20,000 of student debt per borrower. Loan payments are scheduled to resume in October after a hiatus of more than three years.

The White House approved $14.7 billion in debt relief for 1.1 million student loan borrowers “whose universities took advantage of them or closed abruptly,” such as those at CollegeAmerica, Biden said. Relevant institutions include schools such as Corinthian Colleges and DeVry University.

Separately, earlier this month, the administration announced $39 billion in debt forgiveness for 804,000 borrowers after a review of borrowers on income-based repayment plans.

In all, the White House has approved $116 billion in debt relief for more than 3.4 million Americans, Biden said.


Sara Marcus
Sara Marcushttps://unlistednews.com
Meet Sara Marcus, our newest addition to the Unlisted News team! Sara is a talented author and cultural critic, whose work has appeared in a variety of publications. Sara's writing style is characterized by its incisiveness and thought-provoking nature, and her insightful commentary on music, politics, and social justice is sure to captivate our readers. We are thrilled to have her join our team and look forward to sharing her work with our readers.


Please enter your comment!
Please enter your name here

Most Popular

Recent Comments