Biden Administration Canceling $6 Billion in Loan Debt
The Biden Administration reached a deal to cancel $6 billion in federal student loan debt for about 200,000 borrowers who attended mostly for-profit colleges. The agreement covers over 150 institutions including DeVry University, the University of Phoenix and the recently defunct ITT Technical Institute. An additional 68,000 borrowers who did not attend eligible colleges will also have their applications for relief fast tracked under the deal. The lawsuit was originally filed in 2019 and argues that the Department of Education intentionally stalled the borrower defense process, which is how people apply for relief if they believe a college they attended made false advertising claims. A hearing for a judge to give the final sign-off on the deal will take place on July 28th.