Student loan forgiveness has been a hotly debated topic in recent years, with many calling for relief for the millions of Americans burdened by crushing student debt. And now, it looks like some relief is on the way for more than 800,000 borrowers.
In March 2021, the Department of Education announced that it would be granting automatic student loan forgiveness to borrowers who had been granted disability discharges. This move will affect more than 323,000 borrowers, who will collectively have more than $5.8 billion in student loans forgiven. This is a significant step forward in providing relief to borrowers who have been unable to repay their loans due to their disabilities.
But that's not all. On July 9, 2021, the Department of Education announced that it would be granting automatic student loan forgiveness to more than 18,000 borrowers who had been defrauded by their schools. These borrowers will collectively have more than $500 million in student loans forgiven.
This move is part of the Borrower Defense to Repayment program, which was established in the wake of the Corinthian Colleges scandal. Corinthian Colleges, a for-profit college chain, was found to have engaged in widespread fraud, leaving thousands of students with worthless degrees and massive student loan debt. The Borrower Defense to Repayment program allows students who were defrauded by their schools to have their student loans forgiven.
But the Department of Education's student loan forgiveness efforts don't stop there. On July 14, 2021, the Department of Education announced that it would be granting automatic student loan forgiveness to more than 400,000 borrowers who had attended ITT Technical Institute. ITT Tech was another for-profit college chain that was found to have engaged in widespread fraud, leaving thousands of students with worthless degrees and massive student loan debt. These borrowers will collectively have more than $1.1 billion in student loans forgiven.
This move is significant, as it shows that the Department of Education is committed to providing relief to borrowers who have been defrauded by their schools. It also sends a message to other for-profit colleges that engage in predatory practices that they will be held accountable for their actions.
It's important to note that these automatic student loan forgiveness efforts are just a small step toward addressing the student loan debt crisis in the United States. There are still millions of borrowers who are struggling to repay their loans, and many are calling for more comprehensive student loan forgiveness programs.
President Joe Biden has proposed a plan that would forgive up to $10,000 in student loan debt for all borrowers, and up to $50,000 in debt for borrowers who attended public colleges and universities. However, this plan has faced opposition from some lawmakers, who argue that it would be too expensive and unfair to those who have already repaid their loans.
In the meantime, the Department of Education's automatic student loan forgiveness efforts are a welcome relief for the hundreds of thousands of borrowers who will benefit from them. It's a reminder that, when it comes to the student loan debt crisis, there is still work to be done, but progress is being made.