student loan debt, Student Loans

Biden Administration Cancels Additional $55.6 Million in Student Loan Debt

The Biden Administration canceled an additional $55.6 million in student loans for 1,800 students who were found to be victims of fraud. This additional amount brings the total amount of student loan debt cancelled by the Biden administration to $1.5 trillion. 

Since entering office, President Biden has made it his mission to stand up for the thousands of students who were taken advantage of by for-profit colleges. This most recent effort was focused on students who attended Westwood College, Marinello Schools of Beauty, and the Court Reporting Institute. Previously, the administration had approved loan forgiveness for students who attended ITT Technical Institute, the American Career Institute and Corinthian College. This is the first time the Department of Education has approved loan forgiveness for students attending for-profit schools not including these three.  

These loan forgiveness efforts are part of the current administration’s focus on ensuring borrower defense, along with other student loan relief efforts, including loan forgiveness and/or cancellation and loan discharge programs. 

The borrower defense is a federal regulation through the Department of Education that allows federal student loan borrowers the ability to seek forgiveness on their outstanding loans if it can be shown that the students were defrauded by a university or college, which is what has occurred to the students attending Westwood College, Marinello Schools of Beauty, and the Court Reporting Institute. 

This most recent forgiveness for the additional 1,800 students brings up the current total of borrowers the Biden administration has helped to approximately 92,000. Officials with the Department of Education say they intend to keep moving forward with reviewing and approving borrower defense claims so this number is only expected to increase.  

Many Democrat lawmakers are pushing for broader student loan forgiveness measures. On June 23, over 60 Democrats sent a letter to President Biden, asking him to extend the pause of interest and payments for all federal student loans. They had previously requested the President commit to $50,000 in student loan forgiveness per borrower. 

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For borrowers who are struggling with student loan debt, relief options are available.  Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. There are ways to file for bankruptcy with student loan debt.  It is important you contact an experienced Miami bankruptcy attorney who can advise you of all youroptions. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com. 

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