• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Republica Press

Your Business & Political News Source

REPUBLICA PRESS
Your Business & Political News Source

  • Home
  • BUSINESS
  • MONEY
  • POLITICS
  • REAL ESTATE
  • SCIENCE/TECH
  • US
  • WORLD

Education Department scraps a Trump-era policy that limited debt relief for defrauded students.

by

Tens of thousands of borrowers who attended for-profit schools like Corinthian Colleges and ITT Technical Institute that defrauded students will have their student loan debts eliminated after the Education Department rescinded some changes made during the Trump administration that gutted a relief program.

“Borrowers deserve a simplified and fair path to relief when they have been harmed by their institution’s misconduct,” said Miguel Cardona, the education secretary. “We will grant them a fresh start from their debt.”

The change will eliminate around $1 billion in student loan debt owed by around 72,000 borrowers, the department said. Most of them attended ITT and Corinthian, institutions that abruptly shut down years ago.

The relief program, known as borrower defense, allows those who can demonstrate that they were substantially misled by their school to have their federal student loans forgiven. Once little-used, the system was flooded with claims during the Obama administration after a series of large for-profit chains collapsed following a government crackdown on schools that saddled their students with high debts for a low-quality education.

imposed a complicated new methodology that led to only partial relief for many successful applicants. Some whose claims were approved were told they would get $0 in relief.

Mr. Cardona said the department will abandon Ms. DeVos’s methodology and retroactively give those with approved claims a full discharge.

“I’m in a state of shock right now,” said Albert Paul Cruz, who earned an associate degree in computer networking systems in 2010 but never worked in that field. Last year, he received a letter from the Education Department telling him that his borrower defense claim had been approved but that none of his debts would be eliminated.

Mr. Cruz has around $60,000 in student loan debt; his late and missed payments on it have harmed his credit score and made it challenging to obtain a car loan. The debt was “nerve wracking” and kept him up at night — and the prospect of finally being free from it was amazing, he said.

“If this does wipe all the negatives off my profile, I just may finally get a piece of the American dream,” Mr. Cruz said.

View Source

Filed Under: BUSINESS Tagged With: Cardona, Miguel A (1975- ), Corinthian Colleges Inc, Education, Education Department (US), For-Profit Schools, Frauds and Swindling, Government, ITT Technical Institute, Policy, Schools, State, Student Loans, Trump administration

Primary Sidebar

More to See

The Madison Club’s Latest $27M Mansion: Luxury in La Quinta, CA

The poshest place in California's Coachella Valley is The Madison Club. This exclusive gated community in La Quinta is where A-listers and tycoons … [Read More...] about The Madison Club’s Latest $27M Mansion: Luxury in La Quinta, CA

Quality Wines From The Romagna Region Of Italy

Piazza del Popolo in the evening, Ravenna, Emilia-Romagna, Italy getty Italy has 20 different geographical regions, and Emiglia-Romagna—in the … [Read More...] about Quality Wines From The Romagna Region Of Italy

Investigators of War Crimes in Ukraine Face Formidable Challenges

KOROPY, Ukraine — Four men tugged at long strips of fabric to lift a coffin out of the gaping hole in the backyard of a small house. They flung the … [Read More...] about Investigators of War Crimes in Ukraine Face Formidable Challenges

Copyright © 2022 · Republica Press · Log in · As an Amazon Associate we earn from qualifying purchases.

Terms and Conditions - Privacy Policy