Loan relief granted to defrauded for-profit college students
Associated PressThe U.S. Education Department said Wednesday it’s erasing student debt for thousands of borrowers who attended a for-profit college chain that made exaggerated claims about its graduates’ success in finding jobs. The Biden administration said it is approving 18,000 loan forgiveness claims from former students of ITT Technical Institute, a chain that closed in 2016 after being dealt a series of sanctions by the Obama administration. “Many of these borrowers have waited a long time for relief, and we need to work swiftly to render decisions for those whose claims are still pending.” It follows another round of loan discharges in March, when the Education Department cleared $1 billion in federal student debt for 72,000 borrowers. Cardona began chipping away at DeVos’ rules in March when he rescinded a formula that allowed the Education Department to give only partial loan discharges to students whose claims were approved.