The Biden administration has taken a significant step towards alleviating the burden of student loans by announcing the $130 million in federal student loan cancellation for 7,400 students who attended a now-closed Colorado-based college.
$130 Million Student Loan Cancellation
This move is part of the administration’s broader efforts to find ways to federal student loan cancellation, particularly for borrowers who were deceived by for-profit institutions. President Joe Biden highlighted the administration’s commitment to supporting hardworking American families and addressing the mountains of debt faced by students who attended CollegeAmerica in Colorado.
Washington Examiner reported that the student loan cancellation applies specifically to borrowers who attended CollegeAmerica’s Colorado locations, which were part of a network of for-profit institutions owned by the Center for Excellence in Higher Education. These students faced deceptive practices and were left saddled with significant financial burdens. In response, the Department of Education conducted an investigation, and Colorado Attorney General Phil Weiser found evidence of misrepresentation by the schools.
President Biden emphasized the administration’s dedication to rebuilding the middle class and delivering on promises to assist hardworking families. The cancellation of $130 million in student debt for the affected CollegeAmerica attendees marks a substantial step towards providing relief to those who were misled and taken advantage of by the institution.
This is not the first time the Biden administration has taken action against student loan cancellation. Previously, the Department of Education settled a lawsuit by canceling loans for students who attended around 150 for-profit colleges. Additionally, the administration had unveiled plans to forgive up to $20,000 in student loans for borrowers earning less than $125,000 annually. While this plan was challenged in court and struck down by the U.S. Supreme Court, the administration remains committed to finding ways to enact student loan cancellation.
Earlier this month, the administration announced the cancellation of over $30 billion in student loans for 800,000 borrowers under the existing income-driven repayment program. Furthermore, the Department of Education has plans to pursue rulemaking under the Higher Education Act to implement large-scale student loan cancellation.
Biden Administration’s Decision to $130 Million Student Loan Cancellation
The Biden administration’s decision to cancel $130 million in federal student loans for CollegeAmerica attendees in Colorado represents a critical step towards addressing the challenges faced by students burdened with deceptive debt.
By recognizing the misrepresentation by the school and offering relief to those affected, the administration reaffirms its commitment to supporting American families and rebuilding the middle class.
As the administration continues to seek avenues for student loan cancellation, it remains dedicated to protecting borrowers from predatory lending and easing the student loan burdens of hardworking individuals across the nation.