Biden administration cancels $55.6 million in student loan debt for fraud victims

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The Biden administration has canceled $55.6 million in student loan debt for victims who were defrauded by three for-profit institutions.

The Department of Education said in a statement Friday that it has canceled the debts of 1,800 borrowers who attended Westwood College, Marinello Beauty Schools and the Court Reporting Institute.

Of the debts forgiven, the lion’s share — about $53 million — will go to borrowers who attended Westwood College, which closed in 2015.

The school, which had campuses across the country, is accused of misrepresenting students’ ability to transfer credits to another institution between 2002 and 2015. In addition, it is accused of misleading students who went through its criminal justice program into believing they would consider it. Being able to find employment with the various law enforcement agencies in Illinois.

Separately, the administration approved more than $2.2 million from 200 claims they said were defrauded at Marinello. The borrowers claimed that the school did not teach them the basic elements of the cosmetology program, and that students were left for weeks or months without instructors.

The $340,000 in debt to 18 borrowers who attended the Court Reports Institute was forgiven. The agency says the majority of students have never been able to complete the program, noting that only 2 percent to 6 percent of students graduate.

The debt was forgiven under the Education Department’s Borrower Defense Program, which allows those defrauded by institutions to write off their debts.

The Biden administration has already written off $1.5 billion in debt to nearly 92,000 borrowers who claim they were defrauded by ITT Technical and Corinthian College.

Education Secretary Miguel Cardona Miguel Cardonaden’s administration cancels 0.6 million student loan debt for fraud victims The Centers for Disease Control and Prevention is encouraging schools to open in-person learning to Puerto Rico to receive nearly $1 billion in pandemic relief funds. Review and approve borrower defense claims promptly and fairly so that borrowers receive the relief they need and deserve.”

“We also hope that these approvals serve as a warning to any organization that engages in similar behavior that this type of misrepresentation is unacceptable,” he said.

White House is under outright pressure from the left to cancel large portions of student loan debt, something President Biden could use Cawthorne: Door-to-door vaccine strategy for Biden to ‘take’ guns, Bibles calls Trump Jr., cover-up for opposition candidate ATF for Biden on the money: Biden fires the head of the Social Security Administration | IRS scandals haunt Biden’s efforts to get more funding. More are yet reluctant to do so.

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