Education Department will cancel student debt for 115,000 borrowers

Personal finance

Education Secretary nominee Miguel Cardona testifies before the Senate Health, Education, Labor and Pensions committee during his confirmation hearing on Capitol Hill Washington, DC., February 3, 2021.
Susan Walsh | Pool | Reuters

The U.S. Department of Education announced Thursday it will cancel $1.1 billion in student debt for 115,000 borrowers.

The relief will go to those who attended ITT Technical Institute, a for-profit school that is now defunct. The school is accused of misrepresenting itself and steering students into pricey private loans. These borrowers didn’t finish their degrees and left the school after March 31, 2008.

“Today’s action continues the Department’s efforts to improve and use its targeted loan relief authorities to deliver meaningful help to student borrowers,” U.S. Secretary of Education Miguel Cardona, in a statement.

More from Personal Finance:
Comparing lump-sum investing to dollar-cost averaging
How to handle Medicare when you’re living overseas
Crypto takes off as a way to pay for vacation getaways

The Education Department under the Biden administration has now canceled student debt for 563,000 borrowers, totaling $9.5 billion.

Still, President Joe Biden remains under pressure from Democrats, advocates and borrowers to go further and cancel $50,000 per borrower in student debt for all.

Biden has asked the Education Department and the U.S. Department of Justice to review his legal authority to forgive student debt through executive action. The findings of those reports are not yet public.

“You don’t need Congress,” Sen. Majority Leader Chuck Schumer, D-N.Y., has said. “All you need is the flick of a pen.”

How would student loan forgiveness impact you? If you’re willing to share your story, please email me at annie.nova@nbcuni.com

Articles You May Like

Are consumers pulling back on spending? It depends on which CEO you ask
Here’s how to buy renewable energy from your electric utility
China consumption slows as retail sales and investment data disappoint
Average consumer carries $6,218 in credit card debt, as more borrowers are falling behind on their payments
Auto incentives are back — but high interest rates weaken deals for buyers

Leave a Reply

Your email address will not be published. Required fields are marked *