News
More than $5.8 billion of student loans canceled by the Biden administration
The student debt crisis is a big issue in the United States, but the Biden administration is well on its way to repair the damage. Last week, more than 560,000 borrowers had their debt forgiven, and there could be room for more.
Advertisement
Over 560,000 borrowers had their student debt forgiven last week.
Last Wednesday, the U.S. Department of Education announced that it had canceled approximately $5.8 billion in student loans. More than 560,000 borrowers had their outstanding debt forgiven, which accounts for the biggest loan forgiveness action taken by the U.S. government to date.
These cancellations apply to people who attended schools run by Corinthian Colleges. Once one of the biggest for-profit education companies, C.C. filed for bankruptcy in 2015. The company has faced many lawsuits since its founding, back in 1995. In 2013, Vice President Kamala Harris filed a lawsuit the college while she was still attorney general of California. According to Harris, Corinthian was guilty of deceptive and false advertising, among other allegations of the same nature.
Miguel Cardona, the U.S. Secretary of Education prepared a statement to celebrate the action. In it, Cardona said that every student who’s ever felt deceived and driven into debt by C.C. can rest assured that the Biden-Harris administration will discharge their student loans. Borrowers who qualify for discharge will receive an automatic relief, so there’s no need to fill out an application. The department said these people are receiving a notification within the coming weeks.
The news comes just as the Biden administration is considering a wider student loan forgiveness for millions of borrowers across the country. So far, about 1.3 million borrowers had their student loans forgiven, accumulating a total of $25 billion. Many economists and politicians believe the move is a step in the right direction in addressing the student debt crisis. However, millions of borrowers are still wondering when, or if, their student loans will ever be forgiven.
You will be redirected to another website
You’ll receive messages for less than 1 week, with a maximum of 1 message per day. You can unsubscribe anytime by replying STOP. By submitting this form, I confirm that I am 18+ years old and agree to the Privacy Policy and Terms and Conditions. I also provide my signature, giving express consent to receive informational messages via automated emails, SMS, MMS text messages, and other forms of communication. Message frequency may vary as part of our good-faith effort to respond to your inquiry. Message and data rates may apply. Text STOP to cancel. I understand that my consent to receive communications is not a condition of purchase and that I may revoke my consent at any time.
Advertisement
Federal student loans pause will be extended
According to a report from CNBC, White House officials are closing in on canceling about $10,000 of student loans for borrowers with an annual income of less than $150,000. However, the administration has yet to confirm such a strategy. Last April, the Department of Education extended the freeze on student loan repayment through August 31.
However, Michelle Dimino, Third Way’s senior education policy leader expects the repayment pause to be extended once more. Dimino believes the government should hold it off until the end of 2022, or at least until after the midterm elections take place. That is because a recent survey from Data for Progress and Rise stated that American voters are much less likely to vote in the midterms if the current administration doesn’t provide relief to student loan borrowers.
Miguel Cardona and other officials have already made it clear that there is no issue in extending the pause for a bit longer. In April, Cardona said they will continue to monitor things. As of now, the end date remains August 31. But the government is comfortable with moving that date again if needed.
If you are a student with bad credit and need a little hand in getting a loan, we can help. In the link below, you’ll find the best student loans for poor/average credit scores available. Read on for more information about them!
Best student loans for bad credit
Learn what are the easiest-to-get student loans if you have a damaged credit score.
Trending Topics
One-Stop Guide: How to Apply for Torrid Credit Card
Are you a Torrid lover? Learn to apply for the Torrid Credit Card now and score a 5% discount on all your purchases. Keep reading!
Keep ReadingLearn to apply easily for the NASB Mortgage
Want to know how to apply for the NASB mortgage? Follow this step-by-step guide! Several loan options and repayment flexibility! Read on!
Keep ReadingUpgrade Rewards Checking review: A simple account for cash-back lovers!
Read our Upgrade Rewards Checking review, and discover the advantages and potential drawbacks it offers. Earn up to 2% cash back. Read on!
Keep ReadingYou may also like
0% intro APR: U.S. Bank Visa® Platinum Card review
Need a credit card with a $0 annual fee? Check out our thorough U.S. Bank Visa® Platinum Card review and see if it's your right choice!
Keep ReadingGO2bank™ review: is it the best choice for you?
See the GO2bank™ review to find out all about this banking app. Learn about its features and pros and cons. Check it out!
Keep ReadingWells Fargo Reflect® Card – The Low APR credit card you were looking for
Check out the Wells Fargo Reflect® Card review to see if it meets your financial credit card needs. No annual fee and 0% intro APR. Read on!
Keep Reading