The Education Department announced Tuesday that the Biden administration will immediately eliminate $130 million in federal student loan debt owned by 7,400 former students of the collapsed for-profit firm College America.
Eligible borrowers were enrolled at College America sites in Colorado
On Tuesday, the Education Department and the Colorado Attorney General announced a $130 million debt forgiveness program for 7,400 Colorado borrowers of student loans who studied College America.
In a published article by The Washington Post, the Biden administration has subsequently authorized more than $116 billion in loan forgiveness to 3.4 million borrowers, according to Tuesday’s announcement. According to the White House, 1.1 million of those borrowers attended universities that tricked them or abruptly closed.
Biden Administration Assistance for Students in College America!
From January 1, 2006, through July 1, 2020, eligible borrowers were enrolled at College America sites in Colorado. Borrowers who enrolled in College America campuses beyond Colorado have not been impacted, according to top department officials during an announcement to the media.
In an AoL report, despite knowing that 70% of Colorado College America customers had defaulted on their loans, CEHE persuaded borrowers that its private loan product was reasonable. It additionally stated that students would obtain certification to become X-ray technicians, despite the fact that the institution lacked X-ray machines.
In total, the Biden administration has authorized $14.7 billion in assistance for 1.1 million borrowers whose universities exploited them or abruptly closed.
Borrowers with questions about this discharge or other borrower defense relief can call the Education Department’s helpline at (855) 279-6207.