The US Department of Education has approved $415 million in borrower defense claims for students who were duped into taking out loans by their colleges. As a result of the announcement, they will not be compelled to repay loans made using government funding. 16,000 former students will have their loans erased.
According to WPXI, students at DeVry University, Westwood College, ITT Technical Institute, Minnesota School of Business/Globe University, Corinthian Colleges, and Marinello Schools of Beauty will have their student loans forgiven.
The new move brings the total amount of debt relief provided by the Biden administration under borrower defense to repayment to $2 billion for over 107,000 students, according to the Department of Education.
The Department of Education said the real job placement rate was around 58 percent. DeVry was sued by the Federal Trade Commission (FTC) in 2016 for job placement advertising. Per Business Insider, the Federal Trade Commission and the Department of Education finally negotiated an arrangement with the university.
How to Apply For Student Loan Forgiveness?
You must be able to show that your school misled you in order to be eligible for student debt forgiveness. One example is a school that gives inaccurate information about college costs or accreditation.
Borrowers who believe they are qualified for relief will be contacted in the coming weeks, but those who have not been notified can still apply, as per Forbes.
For debtors seeking information about student loan forgiveness, the Department of Education has created a webpage. You can also apply through the US Department of Education’s website.
You can also acquire an application form by contacting the loan servicer or calling the US Department of Education’s Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243). There is no fee to apply for student loan forgiveness.