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Education Department ordered to forgive student loans for over 170K borrowers defrauded by schools
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Just The News - Not The Noise
The Education Department will be required to wipe out student loan debt for another approximately 170,000 borrowers after a federal appeals court recently declined to give the federal government more time to review the claims.
The case is tied to student loan borrowers who claimed they were defrauded by their respective for-profit schools.
The initial case forgave the student loan debts for 300,000 borrowers, but the case has since expanded to nearly 500,000 borrowers and the total debt cleared will equal $23 billion.
Education Department spokesperson Ellen Keast told the New York Times on Monday that the settlement “imposed an unrealistic deadline” on the department.
The Biden administration forgave a total of $34 billion in student loan debt for borrowers whose schools took advantage of them, have since closed, or are part of court settlements, according to the previous administration.