Student rates

Biden writes off $3.9 billion in student loan debt for ITT Tech, DeVry and other borrowers

The Biden administration wrote off $3.9 billion in student loan debt for students attending certain universities. (iStock)

The Biden Administration announced that he would unload any remaining federal student loan debt for borrowers who attended ITT Technical Institute from January 1, 2005 until its closure in September 2016.

The Department of Education made the announcement based on its findings from numerous internal records, testimonials from ITT managers and recruiters, and direct testimonials from borrowers. This will result in 208,000 borrowers receiving $3.9 billion in full loan release, including those who have not yet requested a borrower defense at repayment release. Borrowers will not have to do anything to benefit from this discount.

“It’s time for student borrowers to stop carrying the burden of ITT’s years of lies and false promises,” Education Secretary Miguel Cardona said. “Evidence shows that for years, ITT leaders intentionally misled students about the quality of their programs in order to take advantage of federal student loan programs, regardless of the hardship that would entail.

“The Biden-Harris administration will continue to stand up for borrowers who have been deceived by their colleges while working to strengthen oversight and enforcement to protect today’s students from similar deception and abuse.” , Cardona said.

If you have private student loans, these will not be eligible for federal student debt forgiveness. However, you can lower your monthly payment by refinancing to lower the interest rate. Visit Credible to find your personalized interest rate without affecting your credit score.

DEMOCRATIC LEGISLATIVES URGE BIDEN TO EXTEND STUDENT LOAN PAYMENT BREAK

Education Department announces more student loan forgiveness

Additionally, the Department of Education announced that it had officially notified DeVry University that it was obligated to pay millions of dollars for approved Borrower Defense Claims. The for-profit university chain has the option to submit information about why it should not be required to pay these debts or request a hearing before the Department’s Office of Hearings and Appeals.

The department said it also approved releases for nearly 100 borrowers who enrolled in the Physician Assistant or Medical Billing and Coding program at the Kaplan Career Institute’s Kenmore Square location in Massachusetts from 1st July 2011 to February 16, 2012, when it stopped enrolling new students. .

These borrowers were identified by the Massachusetts Attorney General after an investigation found the institution lied about its placement rates to borrowers. The establishment closed in February 2013.

Through its current loan cancellation programs, these specific actions have brought the total amount of loan relief approved by the Biden administration to nearly $32 billion for 1.6 million borrowers, including $13 billion. dollars related to institutions that have taken advantage of borrowers.

If you have private student loans, these will not qualify for federal student loan forgiveness, but you can lower your monthly payments through refinancing. Visit Credible to compare multiple student lenders at once and choose the one with the best interest rate for you.

BIDEN CONFIRMS THAT HE WILL MAKE DECISION ON STUDENT LOANS BY END OF AUGUST

Biden administration writes off $10,000 in student loan debt per borrower

President Joe Biden announced Wednesday that it forgives $10,000 of student debt for borrowers and $20,000 of student loan debt for Pell Grant borrowers. Student Loan Forgiveness is available to borrowers who earn less than $125,000 per year for an individual or $250,000 per year for a married couple.

“As part of my campaign promise, my administration is announcing a plan to give working-class and middle-class families a break as they prepare to resume federal student loan payments in January 2023,” Biden said. . said in a tweet.

The Biden administration also extended the Forbearance related to COVID for student loan repayments that had been suspended until August 31, pushing the forbearance to December 31, 2022. During this time, borrowers are not required to make payments on their loans and interest rates have been set to 0%. The Ministry of Education also halted collections on delinquent loans during this period.

The ministry said it would announce further details on how borrowers can claim this relief in the coming weeks. The department estimates that nearly 8 million borrowers could be eligible to automatically receive relief because relevant income data is already available.

If you have private student loans, they will not be affected by Biden’s student loan decision. You can lower your monthly payments by refinancing your private student loans. Visit Credible to speak with a student loan expert and get all your questions answered.

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