Last week, the Biden administration announced a sweeping initiative to enact billions of dollars in automatic student loan cancellation for over half a million borrowers. The Education Department characterized the student loan forgiveness initiative as one of its largest in history.
But while hundreds of thousands of borrowers will see their student debt balances wiped out automatically, the program that underlies the administration’s newest student loan cancellation is open to anyone. Here are the details.
Student Loan Forgiveness for Borrowers Defrauded By Corinthian Colleges.
The Biden administration’s announcement last week centered on a federal student loan cancellation program called Borrower Defense to Repayment. That program allows federal student loan borrowers to request loan forgiveness if they were defrauded or misled by their school via misrepresentations about critical elements of their degree program such as admissions, credit transferability, or career prospects.