Biden administration cancels $55.6 million in student loan debt

The Department of Education announced on Friday that more than 1,800 borrower defense to repayment claims had been approved, erasing the student loan debt for former students at three different institutions. 

Claims made by three different higher education institutions were found to be fraudulent, thus making student debt forgiveness for past students at these schools possible. The three schools are Westwood College, Marinello Schools of Beauty, and Court Reporting Institute. The U.S. Secretary of Education, Miguel Cardona, commented how the Department of Education was and would continue to be, “commit[ed] to standing up for students whose colleges took advantage of them.”

At Westwood College, students were told they would be able to transfer credits to other schools if they transferred. In addition, they were promised that their education would make them eligible to become a law enforcement official in the surrounding areas. These claims were false, as the credits did not transfer and the law enforcement agencies didn’t accept the credits.

Marinello Schools of Beauty allegedly misrepresented the education offered at its campuses. Students were often left without instructors or directions, causing them to fail and making it unlikely that they would pass licensing tests. The Court Reporting Institute’s advertised prediction of how long it would take to finish coursework was a gross underestimate of how long it actually took.

Due to this, it was estimated only 2-6% of students finished the coursework, and it took them more time than advertised to them. This latest cancellation of student debt totaled around $55.6 million, which brings the total debt cancellation by the Biden Administration up to $1.5 billion for around 92,000 borrowers.



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