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Government to Cancel $6 Billion in Student Loans for Defrauded Borrowers

Around 200,000 who sought relief after attending schools that the Education Department said showed signs of “substantial misconduct” will have their federal student loans wiped out.

Around 200,000 former students who attended schools that they said defrauded them will have $6 billion in federal loans canceled under a sweeping settlement announced on Wednesday, the latest move by the Biden administration to address the student loan crisis by eliminating some debts.

Those who applied for relief — some as long as seven years ago — will have their loans wiped out if they attended one of more than 150 schools named in the class-action settlement, nearly all of which are for-profit colleges and vocational programs. The deal reverses 128,000 denial notices — which a federal judge called “disturbingly Kafkaesque” — that were sent to relief applicants during the Trump administration.

Many of the schools included in the settlement are out of business. They include

Keep reading this article on The New York Times Business.

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