Biden's Debt Relief Initiative
In a recent move, the Biden administration has decided to cancel $130 million in student debt. This decision is set to affect approximately 7,400 student borrowers who enrolled at CollegeAmerica in Colorado between 2006 and July 1, 2020, according to a statement from the Education Department.
Misrepresentations Lead to College Shutdown
CollegeAmerica was a private college that ceased operations in September 2020. The closure followed an investigation by Colorado's attorney general that exposed the institution's widespread misrepresentations regarding its graduates' salaries and employment rates. This investigation was highlighted in a statement released by the department.
Supporting Student Borrowers Victimized by College Misconduct
President Biden, in a statement, expressed sympathy towards the CollegeAmerica borrowers who were "lied to, ripped off, and saddled with mountains of debt". He emphasized that his administration had already approved $14.7 billion in relief for 1.1 million borrowers affected by colleges that either manipulated them or closed abruptly.
Biden's Crusade Against Mounting Student Debt
Addressing the soaring U.S. student debt has been a top priority for Biden since assuming the presidency in January 2021. This commitment has been shown through his plan to offer a staggering $430 billion in loan relief.
Future Debt Relief Measures Amid Legal Obstacles
However, his ambitious loan relief plan encountered a roadblock when it was thwarted by the Supreme Court in a June 30 ruling. Despite this setback, Biden remains unwavering in his resolve to provide relief and has promised to seek new avenues to fulfill this commitment.
