Biden administration canceling $6 billion in student loan debt for 200,000 borrowers

he Biden administration reached a deal this week to cancel $6 billion in federal student loan debt for about 200,000 borrowers who attended mostly for-profit colleges.

The agreement covers more than 150 schools, including DeVry University, the University of Phoenix, and the recently defunct ITT Technical Institute.

Another 68,000 borrowers who didn't attend eligible colleges will have their applications for relief fast tracked under the deal.

he lawsuit was originally filed in 2019 and argued that the Department of Education intentionally stalled the borrower defense process, which is how people apply for relief if they believe a college they attended made false advertising claims.

Eileen Connor, the director of the Project on Predatory Student Lending, which represented the plaintiffs, celebrated the "momentous proposed settlement" on Thursday.

"It will not only help secure billions of dollars in debt cancellation for defrauded students, but charts a borrower defense process that is fair, just, and efficient for future borrowers," she said in a statement.

A hearing for a judge to give the final sign-off on the deal is scheduled for July 28.

SAUCE: https://www.foxbusiness.com/politics/biden-administration-canceling-6-billion-student-loan-debt?