In total, the Department of Education has approved discharging $8.7 billion in student loan debt for more than 450,000 borrowers.
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That amount has included:
- $7.1 billion for borrowers who were eligible for relief because of “total and permanent disability.”
- $55.6 million in loan discharges for students who attended three trade schools that officials said misrepresented themselves to students.
- Another $1 billion for other students defrauded by their schools.
The Biden Administration has cancelled nearly $10 billion in student loan debt since January 2021, according to the U.S. Department of Education. The Department reported they have approved $9.5 billion in student loan discharges since January 2021, affecting approximately 563,000 borrowers. This has given borrowers the ability to tackle other debts, invest and increase savings.
President Biden has made it his goal to relieve the debt loads carried by struggling student loan borrowers. Announcements have been issued since January regarding various cancellation efforts the administration has made. The most recent announcement involved $1.1 billion in student loans forgiven for the 115,000 students defrauded by now defunct ITT Technical Institute. Many of the administration’s efforts have focused on for-profit colleges such as ITT Tech.
According to the Department’s announcement, of the $9.5 billion forgiven, $7.1 billion was for borrowers who were considered eligible for relief due to “total and permanent disability.” An additional $55.6 million in discharges were issued to students who attended three for-profit trade schools which defrauded them to attend these universities, and an additional $1 billion was for other students who were similarly defrauded by their schools.
Student loan advocates say that widespread loan forgiveness will benefit the nation’s economy. As borrowers have more money freed up due to reduced debt loans, they can take that money and use it for major purchases that will help the economy, including home and vehicle purchases.
President Biden has asked the Education Secretary, Miguel Cardona, to look into whether a president could legally forgive that much student loan debt through an executive order. However, he stated that this request was made in April 2021, and no further statements have been made since that time as to how that question was answered.
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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 your options. 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.