U.S. Secretary of Education Cardona talks about the work of the Biden-Harris administration to give borrowers a fresh start when it comes to forgiving loans and Pell.
The Biden administration reached an agreement this week to cancel $ 6 billion in federal student loan debt for about 200,000 borrowers who attended mostly for-profit colleges.
The deal covers more than 150 schools, including DeVry University, the University of Phoenix and the recently defunct ITT Technical Institute.
Another 68,000 borrowers who did not attend eligible universities will have a quick follow-up of their relief requests under the agreement.
Activists hold signs as they attend a student loan forgiveness rally on Pennsylvania Avenue and 17th Street near the White House on April 27, 2022 in Washington, DC. (Anna Moneymaker / Getty Images / Getty Images)
The lawsuit was originally filed in 2019 and argued that the Department of Education intentionally stopped the borrower’s advocacy process, which is how people apply for relief if they believe a university they attended made false advertising claims.
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Eileen Connor, director of the Project on Predatory Student Lending, which represented the plaintiffs, held the “transcendental liquidation proposal” on Thursday.
“Not only will it help secure billions of dollars in debt cancellation for scammed students, but it will chart a borrower advocacy process that is fair, equitable and efficient for future borrowers,” it said in a statement.
A hearing is scheduled for July 28 for a judge to give the final settlement of the settlement.
President Biden speaks in the East Room of the White House in Washington on Tuesday, April 5, 2022. (Photo AP / Carolyn Kaster / AP News Room)
The deal comes weeks after the Biden administration announced it would cancel about $ 5.8 billion in debt for anyone attending a Corinthian school.
Since the early days of the Biden administration, the progressive wing of the Democratic Party has been pushing the president to cancel $ 50,000 in student loan debt for each borrower.
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Biden has so far resisted those calls, but the Washington Post reported last month that the White House is considering canceling up to $ 10,000 in student debt for every borrower who earns less than $ 150,000 a year, or $ 300,000. combined dollars for married couples.
The Associated Press contributed to this report.