The Education Department announced this week it would fully forgive the federal loans of borrowers who enrolled in schools that “engaged in certain misconduct.”
Under the Trump administration, some students only were only given partial relief, the department said. The Education Department estimates the new formula could help approximately 72,000 borrowers receive $1 billion.MORE: Students need only 3-feet of space in the classroom with masks, CDC says
“Borrowers deserve a simplified and fair path to relief when they have been harmed by their institution’s misconduct,” said the new Secretary of Education, Miguel Cardona, in a statement. “A close review of these claims and the associated evidence showed these borrowers have been harmed and we will grant them a fresh start from their debt.”
In 2019, then-Education Secretary Betsy DeVos faced intense scrutiny over her handling of the issue when she appeared before the House Education and Labor committee. The Education Department says it will now ensure borrowers with approved claims “have a streamlined path to receiving full loan discharges,” including individuals who previously received “less than a full loan discharge.”
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