According to multiple reports, The U.S. Department of Education is canceling $150 million in debt for students
According to multiple reports, The U.S. Department of Education is canceling $150 million in debt for students who were attending for-profit colleges that closed — while they were enrolled. The move comes after a federal judge ordered implementation of an Obama-era rule known as Borrower Defense to Repayment that Secretary Betsy Devos has sought to block. Some 15,000 borrowers will see their student debt wiped away.
Many of the 15,000 borrowers who will see their debt vanish attended Corinthian Colleges, which inflated job placement numbers and was fined $30M dollars before being closed. Students that weren’t enrolled during the closings will also see all their debt vanish because they enrolled under false pretense.
This is great news and will help many people, but in the big picture surrounding student debt, this is just a drop in a bucket. The student debt market is over 1.8 Trillion dollars making this relief about .008% of the total debt market.
