The Ministry of Education is continuing to resolve the backlog of claims from borrowers who believe they should not repay student loans. It announced on Friday that it has provided an additional $55.6 million in relief to students from three closed institutions, which have “extensive and substantial Misrepresentation of their show”.

More than 1,800 applications were approved for borrowers studying at Westwood College, Marinello Schools of Beauty and Court Reporting Institute. Borrowers will get 100% loan forgiveness.

The department found that Westwood College had misrepresented the ability of students to transfer credits to other institutions, which meant that those students who had participated would have to restart their studies elsewhere. Westwood also told students in its criminal justice program that they can find police jobs in Illinois, but the Chicago Police Department and other law enforcement agencies do not accept Westwood credits.

Students at the Marinello beauty school said that these institutions did not train them on the key elements of beauty-such as how to get a haircut. The department found that Marinello also left students without a teacher for weeks or months at a time.

According to the department, the Court Reporting Institute misrepresented the time required for students to complete their courses, and most students who attended the institution never completed or became court reporters-only 2% to 6% of students actually graduated from CRI .

The latest approvals have increased the amount of relief provided by the department in the past few months to students who have defended claims by borrowers, and the total amount of loans cancelled for nearly 92,000 borrowers has now exceeded US$1.5 billion. March, It provides $1 billion in debt relief For borrowers who previously received only partial relief, and last month It approved the claim For borrowers who have participated in the ITT Institute of Technology.

The Department of Education no longer handles the defense claims of borrowers like the Trump administration did. At that time, the department calculated the amount of harm caused by deceptive agency practices to students and only provided relief proportional to the harm.This method is beneficial in theory, but does not work in practice, increasing Backlog Said Justin Dräger, chairman and CEO of the National Association of Student Financial Aid Administrators.

“What I saw that the Biden administration was doing was coming in and confessing,’We are clearing the deck so that these students can shut down,'” Dräger said. “And simply forgiving debt becomes the fairest thing we can do, otherwise, they are just hanging out in this permanent predicament.”

This Latest available data It shows that as of the end of April, the department still has more than 107,000 borrower defense applications that need to be reviewed. Dräger said that as long as the backlog of cases continues to exist, he expects the Biden administration to continue to act quickly to resolve the claims.Education Minister Miguel Cardona reiterated on Friday In release.

Cardona said: “The department will continue to do its best to review and approve borrowers’ defense claims quickly and fairly, so that borrowers can obtain the relief they need and deserve.” “We also hope that these approvals will warn you. For any organization that engages in similar behavior, such false statements are unacceptable.”

It is worth noting that the department considered and mentioned the ownership of each institution in its announcement. Julia Barnard, a researcher at the Center for Responsible Lending, said that this has not traditionally been done, noting that the CRL is happy to see individual owners take responsibility.

But the Biden government can take more measures to help defrauded students, such as providing group withdrawals for students who attended these institutions but did not apply for the borrower’s defense, Barnard added.

Barnard said: “We are very happy that the Biden administration is now taking a proactive approach to solve the problem, but we think this is a low threshold because these conditions are limited for those who have the ability and means to file a claim. .”.


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