Biden Administration Forgives $37 Million University of Phoenix Student Loan

The Biden administration is forgiving $37 million in University of Phoenix student loan debt for 1,200 attendees due to deceptive job prospect claims.

The Biden administration is forgiving $37 million in University of Phoenix student loan debt. (PHOTO: CNN)

READ ALSO: CHERISH ACT ADVOCATES PUSH DEBT-FREE COLLEGE SCHOLARSHIP FOR A STRONGER WORKFORCE

Biden Administration Forgives Nearly $37 Million in University of Phoenix Student Loan Debt

The Biden administration is forgiving almost $37 million in University of Phoenix student loan debt for over 1,200 attendees due to misleading information about job prospects. This comes as part of the administration’s ongoing efforts to address student debt.

Former students eligible for relief were enrolled between September 21, 2012, and December 31, 2014, and had applied for forgiveness under the borrower defense to repayment program, which allows individuals to seek University of Phoenix student loan relief if they believe their college misled them.

Redland Daily Facts reported the Department of Education found that the University of Phoenix falsely claimed corporate partnerships would give students hiring advantages.

READ ALSO: US DEPARTMENT OF TREASURY INTERNAL REVENUE SERVICE: HUNTER BIDEN SUED THE AGENCY FOR ALLEGED DISCLOSURE OF HIS TAXES BY WHISTLEBLOWERS

Challenging University of Phoenix Student Loan Findings; Borrowers Get Relief and Easier Access to Forgiveness

The University of Phoenix disputes the government’s findings and its involvement in the 2019 settlement, pledging to challenge allegations through legal channels. According to CNN, the Department of Education will inform eligible borrowers of their University of Phoenix student loan relief approvals by early October and instruct loan servicers to place their loans in forbearance until officially canceled.

This means borrowers won’t need to make payments even after the pandemic-related freeze on federal student loan payments ends in October.

Other affected former students can still apply for University of Phoenix student loan relief through the borrower defense program on the Federal Student Aid website.

Additionally, the Biden administration has taken steps to simplify access to federal student loan forgiveness, including expanding eligibility for the Public Service Loan Forgiveness program and introducing the SAVE (Saving on a Valuable Education) income-driven repayment plan, aimed at reducing monthly payments and long-term repayment amounts for eligible borrowers.

READ ALSO: MEASURE TO DECREASE SALES TAX ON GROCERIES INTRODUCED BY HOOVER COUNCIL