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Education Department cancels $415 million in student debt for victims of for-profit college fraud | CNN Politics
The Education Department announced Wednesday that it has canceled another $415 million in federal student loan debt owed by nearly 16,000 borrowers who were misled by for-profit colleges.
Department of Education to cancel $415 million in student loan debt | MarketWatch
Roughly 16,000 borrowers who were scammed by their schools will have their federal student loans discharged, resulting in $415 million in relief, the Department of Education announced Wednesday. The borrowers receiving relief attended four for-profit colleges that the agency found misled students in the process of luring them into enrolling and taking on debt to pay for school.
Feds Forgive Loans of Thousands More Defrauded Student Borrowers | US News and World Report
Nearly 16,000 federal student loan borrowers will receive $415 million in relief, according to an announcement Wednesday by the Education Department that provided new details of fraud by several for-profit schools, including those who attended DeVry University.
The Education Department will wipe out loans for students defrauded by DeVry University | The New York Times
The Education Department will cancel federal student loans for at least 1,800 students who attended DeVry University, once one of the nation’s largest for-profit college chains, because it fraudulently lured in applicants for years with vastly inflated claims about their career prospects.
Education Department’s Student Loan Discharges Represent Only 6% of Unresolved Borrower Defense Claims | Press Release
Today, the U.S. Department of Education announced that it will cancel $415 million in federal student loans for approximately 16,000 borrowers, including former students of the for-profit colleges ITT Tech, Corinthian Colleges, DeVry University, Westwood College, Marinello Schools of Beauty, and Minnesota School of Business/Globe University. The Department described its findings as “instances in which students were misled into loans at institutions or programs that could not deliver what they’d promised.”
DeVry University misled students. Now, the federal government is erasing their debt | NPR
Nearly 16,000 federal student loan borrowers who were misled by for-profit colleges will have $415 million in debts erased, according to the U.S. Department of Education. These borrowers — who attended DeVry University, ITT Technical Institute and other schools — will receive relief through a legal provision known as borrower defense, which promises loan relief for defrauded borrowers.
Biden Administration Approves $415 Million In New Student Loan Forgiveness Under Troubled Program: Key Details | Forbes
The U.S. Department of Education on Wednesday announced that it had approved $415 million in new student loan forgiveness for borrowers defrauded by their schools. “The Department remains committed to giving borrowers discharges when the evidence shows their college violated the law and standards,” said U.S. Secretary of Education Miguel Cardona in a statement. “Students count on their colleges to be truthful. Unfortunately, today’s findings show too many instances in which students were misled into loans at institutions or programs that could not deliver what they’d promised.”
For-Profit College CEO Said CFPB’s Chopra Should Be Abused At Guantanamo | Republic Report
On October 2, 2015, Kevin Modany, the CEO of ITT Educational Services, Inc., then one of the biggest for-profit college operations in the United States, sent an email to company lawyers about Rohit Chopra, an assistant director at the U.S. Consumer Financial Protection Bureau. “This guy,” Modany wrote, “should be sent to Guantanamo Bay for about a decade of R&R; which should include an aggressive regimen of ‘water sports’!”
New Report Details Massive Scale of Fraud and Abuse at Notorious For-Profit College ITT Tech | Press Release
The Project on Predatory Student Lending today released a new report detailing the massive scale of fraud and abuse by the defunct for-profit college ITT Tech. The report, “Dreams Destroyed: How ITT Technical Institute Defrauded a Generation of Students” was made public and sent today to Education Secretary Miguel Cardona. It presents the largest volume of evidence compiled on ITT, including thousands of ITT’s own internal records. The documents unequivocally show that ITT was not a legitimate educational institution: it systematically and brazenly lied to students in order to profit from their federal financial aid.
Could student loan payments be frozen until 2023? ‘Anything is possible,’ experts say | Fortune Education
Payments on federal student loans have been on pause for nearly two years to give borrowers a financial break during the pandemic. After several extensions, though, borrowers will be on the hook to start making payments again in less than 100 days.