President Joe Biden announced on Tuesday that his administration will provide assistance by canceling a whopping sum of 130 million dollars in loans taken out for attending CollegeAmerica in Colorado. This declaration marked a significant step towards student loan forgiveness.
This choice was made in response to a recent Supreme Court judgment from June that barred President Biden from enacting a broad student loan forgiveness scheme.
Joe Biden Takes On Deceptive Tactics in Student Loan Forgiveness
As a result, starting in October 2023, the vast majority of borrowers nationwide will have to start making their student loan payments again.
However, this most recent update on loan forgiveness is good news for a particular subset of students who were connected to CollegeAmerica in Colorado.
Notably, due to some claims of corruption, the higher education organization CollegeAmerica no longer exists. The college was charged with misleading borrowers by stating inaccurately about their loans and the prospective career opportunities following graduation.
In response, President Biden said, These borrowers were misled, taken advantage of, and burdened with mountains of debt.
He highlighted that he would take decisive measures to stop these dishonest tactics and give deserving debtors the relief they are due.
Read more: Kim Jong-Un Reveals Prohibited Missile Arsenal In Meeting With Russian Official
New Policy to Aid CollegeAmerica Borrowers
President Biden reaffirmed that his team will not waver in its pursuit of justice for borrowers and students who have been taken advantage of.
He told the American people that initiatives to help borrowers, hold those responsible accountable, and increase access to higher education for more citizens will continue unabated as long as he is president.
People who attended CollegeAmerica in Colorado between January 1, 2006, and July 1, 2020—the year the college discontinued operations—will especially benefit from the new policy for student loan relief.
This scheme is anticipated to help 7,400 borrowers, providing they can prove they attended the above campuses and that they applied for loans within the allotted time frame.
Read more: Safeguarding Lives With AI-Driven Weather Forecasts