The administration of President Joe Biden has had setbacks in the form of a blocked student loan forgiveness scheme earlier this year.
However, it is still dedicated to reducing student debt through targeted cancellations within existing programs.
Strengthens Student Debt Relief Efforts as $116 Billion in Loans Canceled
Over 2,300 borrowers who attended the for-profit Ashford University in California have forgiven their $72 million in federal student loan debt, according to a recent announcement from the Department of Education.
The Biden administration’s attempts to provide relief to borrowers struggling with school debt are strengthened by this action.
The administration’s initiatives include assisting borrowers misled by for-profit colleges and providing them respite through the borrower defense to repayment program.
A total of $116 billion in student loan debt has been canceled for over 3.4 million people.
Since its inception, the borrower defense program has protected students’ rights by addressing educational fraud or deception cases.
According to the Department of Education’s investigation, Ashford University made “numerous substantial misrepresentations” between March 1, 2009, and April 30, 2020.
It was discovered that the organization, now known as the University of Arizona Global Campus, had deceived students to enroll them.
The California Department of Justice used evidence in a successful case against Ashford University and its former parent corporation, Zovio, to support its assessment.
The penalty imposed by the court in March 2022 for siding with the state was over $22.37 million, and the verdict is still being appealed.
James Kvaal, the US undersecretary of education, emphasized the high-pressure and deceptive tactics Ashford University used to recruit students, stating, “As the California Department of Justice proved in court, Ashford relied extensively on high-pressure and deceptive recruiting tactics to lure students.”
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Biden Administration’s Focused Student Debt Relief
In September, borrowers who will benefit from this relief measure will be notified by email.
These borrowers will not be required to make payments on the dismissed loans when monthly payments resume in October following the pandemic-related suspension.
While President Biden’s more extensive proposals for forgiving student loans have run into legal trouble, his administration has effectively started focused actions to offer more limited relief.
The Borrower Defense Program’s application process for debt cancellation will be made more straightforward, and the Public Service Loan Forgiveness Program’s eligibility will be made more inclusive.
The administration’s dedication to reducing the cost of student loans is further demonstrated by the recently announced SAVE (Saving on a Valuable Education) income-driven repayment plan.
In conclusion, the Biden administration’s tenacious efforts to cancel student loans continue, with the most recent cancellation of $72 million in debt for Ashford University students serving as an example of the administration’s dedication to preserving students’ financial security and upholding justice in higher education.
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