The Department of Education took new steps last week to provide certain federal student loan borrowers complete debt relief.
The announcement came as Democrats explore how to cancel student debt. More than 40 million Americans have federal student loan debt totaling more than $1.7 trillion. Debt payments are currently suspended due to financial hardship caused by the coronavirus pandemic.
Perhaps preparing to take even larger steps in the near future, the Education Department said student loan borrowers can apply for full debt cancellation if their college engaged in fraud or other financial misconduct.
The government estimates that $1 billion in student loans will receive “cancellation” as a result, which will benefit 72,000 borrowers.
“Borrowers deserve a simplified and fair path to relief when they have been harmed by their institution’s misconduct,” Education Secretary Miguel Cardona said. “A close review of these claims and the associated evidence showed these borrowers have been harmed and we will grant them a fresh start from their debt.” – READ MORE
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