$150M Loan Debt To Be Cancelled For US Students Who Attended For-Profit Colleges

Important news for all the US students! As told by NBC News, the US Department of Education announced it would automatically cancel $150M student loan debt connected to for-profit colleges that closed in recent years. This initiative was put forward during the Obama era, but was forced on Betsy DeVos to implement only this past October. The Typical Student team learned more on the story.

Who Does Student Loan Discharge Apply To?

About 15,000 students who attended now-defunct colleges that closed between Nov. 1, 2013, and Dec. 4, 2018, are automatically eligible for the loan discharge. Feel free to learn more from the announcement made by US Department of Education. This mainly applies to students who attended Corinthian Colleges, Inc. and  ITT Tech. However, other students who have somehow been defrauded can also apply for loan cancellation.

How Many US Students Have Outstanding Claims?

The court order didn’t sit well with Ms DeVos who’s allegedly "trying to rewrite the underlying rule" that sparked the loan cancellations. The assumption is based on the fact that back in April DeVos canceled memos issued by the Dept. during Obama era. Those memos "imposed tougher rules on how the federal government oversees student loan debt connected to for-profit colleges." As a result, CA and other states filed lawsuits. Over 100,000 US students have outstanding claims against the institutions in question.