Biden Admin wipes out $37M student debt for 1K individuals.
About 1,200 University of Phoenix Students to Have Student Loans Canceled
The Biden administration has announced a groundbreaking deal that will see the cancellation of student loans for approximately 1,200 students who attended the University of Phoenix. This move, amounting to $37 million in debt forgiveness, aims to provide relief for students who attended the college between September 21, 2012, and December 31, 2014, according to CNN.
The loans being forgiven are those of former students who sought to have their loans canceled under the borrower defense to repayment program. This program allows former students to seek relief if they believe they were defrauded or misled by the college they attended.
The Department of Education is basing this loan forgiveness on a Federal Trade Commission investigation into the University of Phoenix. The investigation focused on the extent to which the college exaggerated claims of partnerships with top corporations that would supposedly lead to employment preferences.
FTC action leads @usedgov to forgive nearly $37 million in loans for students deceived by University of Phoenix: https://t.co/Qh7WQBqU2L /1
— FTC (@FTC) September 20, 2023
In a 2019 settlement, the for-profit college admitted no wrongdoing. However, Federal Student Aid chief operating officer Richard Cordray stated, “The University of Phoenix brazenly deceived prospective students with false ads to get them to enroll. Students who trusted the school and wanted to better their lives through education ended up with mounds of debt and useless degrees.”
The University of Phoenix, on the other hand, countered with its own statement, saying, “We respectfully, but adamantly disagree with the U.S. Department of Education’s allegations related to the Dec. 2019 University of Phoenix settlement with the Federal Trade Commission. While the University is not against relief for borrowers who have valid claims, we intend to vigorously challenge each frivolous allegation and suspicious claim through every available legal avenue.”
Eligible former University of Phoenix students covered by the loan forgiveness will receive official notices next month. However, October is also when student loan repayments, which have been paused since the pandemic, will resume. It is worth noting that the Biden administration’s attempt to implement a comprehensive debt elimination program was rejected by the U.S. Supreme Court.
According to CNBC, the borrowing rates at the University of Phoenix are among the highest in the nation. In the 2022-23 academic year, students took out nearly $484 million in loans. This information comes from higher education expert Mark Kantrowitz.
In August, the Department of Education also forgave $72 million in loans for over 2,300 borrowers who attended the for-profit Ashford University in California, as reported by CNN.
In July, the Education Department canceled $130 million in loans for 7,400 students.
That action covered Colorado students who attended CollegeAmerica between 2006 and July 1, 2020. The college shut down in 2021 after a state lawsuit against it, according to ABC.
The post Biden Admin Cancels $37M in Student Debt for Just Over 1K People appeared first on The Western Journal.
How does the loan forgiveness for University of Phoenix students demonstrate the government’s commitment to protecting students and holding educational institutions accountable for their actions
Xt week, detailing the cancellation of their loans. This will bring much-needed relief to these students, who were burdened with debt from their time at the University of Phoenix. It is a significant step towards addressing the issue of student loan debt in the country.
The borrower defense to repayment program is an important tool for students who believe they were deceived or defrauded by their college. It allows them to seek relief from their loans and holds institutions accountable for their actions. The loan forgiveness for the University of Phoenix students is a testament to the effectiveness of this program.
The Federal Trade Commission’s investigation into the University of Phoenix revealed the extent of the college’s misleading claims about partnerships with top corporations and employment opportunities for its students. These false promises led many students to enroll in the college, hoping for a better future through education. Instead, they ended up with substantial debt and degrees that did not provide the promised career prospects.
The $37 million in loan forgiveness is a necessary response to the harm caused by the University of Phoenix’s deceptive practices. It demonstrates the government’s commitment to protecting students and ensuring they are not taken advantage of by educational institutions. By canceling these loans, the Biden administration is granting these students a fresh start and the opportunity to pursue their goals without the burden of debt.
However, it is important to note that the University of Phoenix denies any wrongdoing and intends to challenge the Department of Education’s allegations. They argue that they have settled with the Federal Trade Commission in 2019 and should not be subject to further legal action. The coming legal battle will determine the final outcome of this loan forgiveness and shed light on the responsibility of educational institutions towards their students.
In conclusion, the cancellation of student loans for approximately 1,200 University of Phoenix students is a significant step towards providing relief to those who were deceived and burdened with debt. It highlights the importance of the borrower defense to repayment program in protecting students and holding institutions accountable for their actions. While the University of Phoenix may challenge the allegations, this move by the Biden administration sets a precedent for ensuring the rights and well-being of students in the United States.
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