The Biden administration is making it a little easier for borrowers who were misled by their for-profit college to apply for student loan forgiveness. This comes as the president’s broader, separate plan to cancel up to $20,000 in student debt is held up in the courts.
The Department of Education launched a new webpage this week, providing clearer instructions for people seeking debt forgiveness under a program called borrower defense to repayment.
Borrowers who have been misled by their college have long had the right to request loan forgiveness, but the application process wasn’t clearly established until the Obama administration. Now, the department’s Federal Student Aid office is offering more comprehensive information about how to apply.
“The new borrower defense webpage is filled with guiding language and tips to help borrowers successfully complete their applications and get the loan relief to which they are entitled,” said Richard Cordray, Federal Student Aid’s chief operating officer, in a statement sent to CNN.
“For all those who lost time, money, and the promise of an education, we will continue to work to make them whole,” Cordray added.
Many students who have received forgiveness under the borrower defense program have been misled by for-profit colleges, like Corinthian Colleges, ITT Technical Institute and Marinello Schools of Beauty – to name a few. But a borrower is not required to attend a for-profit school to qualify.
The government has found that some students at those schools were misled or lied to about something that was central to their decision to enroll. Some schools provided inflated job placement numbers for graduates, for example.
If the Department of Education approves a borrower defense application, the remaining federal student debt the applicant has from attending the school…
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