Senator Chuck Schumer tweeted his support for a recent decision by the Department of Education to cancel $1 billion in student loan debt for borrowers who were defrauded by for-profit colleges. The announcement is being heralded as a victory for those who have been burdened with debt they incurred while attending schools that made false promises about job prospects and quality of education.
For many years, students who attended these institutions found themselves saddled with tens of thousands of dollars in debt, despite not receiving the education or job opportunities they were promised. This issue has plagued the higher education system in America for decades, leading to calls from activists and lawmakers alike to address it.
The move by the Department of Education was met with praise from Democrats like Senator Schumer, who has long been an advocate for canceling student loan debt. In a tweet posted on March 18th, he wrote: “Good. We’ve been fighting to #CancelStudentDebt for students across this country, and this is a good step for these students defrauded by for-profit colleges.”
The decision will impact approximately 72,000 borrowers who attended schools operated by Corinthian Colleges Inc., ITT Technical Institute, and others that were found to have misled students about their programs’ outcomes. These borrowers will receive full loan forgiveness under the new policy.
This isn’t the first time there has been action taken against predatory practices within higher education institutions. In fact, during President Obama’s administration, regulations known as “borrower defense” were put into place that allowed students to apply for loan forgiveness if their school engaged in fraudulent practices.
However, under Secretary Betsy DeVos’ leadership at the Department of Education during Trump’s presidency, these regulations were weakened significantly. This left many former students without any recourse when it came to seeking relief from their debts.
Now with President Biden’s administration taking over and Miguel Cardona serving as Secretary of Education things look set to change once again. The recent decision to cancel the debt of those defrauded by for-profit institutions is seen as a step in the right direction.
The Department of Education has stated that it will continue to review claims from students who were defrauded by their schools and make decisions on a case-by-case basis. While this move is significant, there are still many borrowers out there struggling with student loan debt, and lawmakers will likely continue to push for wider relief measures in the future.