Biden administration is whittling away at backlog of student debt relief claims – The Washington Post
The latest cancellations amount to a total of $55.6 million in relief
Working through a backlog of student debt relief claims, the Education Department said Friday it will cancel the loans of more than 1,800 people defrauded by defunct for-profit chains Westwood College, Marinello Schools of Beauty and the Court Reporting Institute.
The Biden administration inherited a score of petitions from former students of for-profit schools requesting the department cancel their debt under a statute known as “borrower defense to repayment.” Applications piled up at the department amid a series of college closures and the Trump administration’s efforts to delay and limit loan cancellation.
Advocacy groups have complained that the new administration is not working fast enough to resolve claims that in some cases have languished at the department since President Barack Obama was in office. Education Secretary Miguel Cardona says the federal agency is committed to helping students whose colleges took advantage of them.
“The Department will continue doing its part to review and approve borrower defense claims quickly and fairly so that borrowers receive the relief that they need and deserve,” Cardona said Friday. “We also hope these approvals serve as a warning to any institution engaging in similar conduct that this type of misrepresentation is unacceptable.”