The Daily Guardian: Biden Administration Forgives $37 Million in Student Debt for Defrauded Borrowers
Title: Biden Administration Erases $37 Million in Student Debt for University of Phoenix Students
Date: [Insert Date]
Byline: [Author Name]
In a significant move towards relieving the burden of student debt, the Biden administration has announced the cancellation of nearly $37 million in student loans for over 1,200 students who attended the University of Phoenix. This exceptional measure comes as part of the borrower defense program, which allows borrowers to have their federal student loans erased if they can prove they were misled or defrauded by their educational institutions.
The relief is specifically targeted towards borrowers who applied for borrower defense discharges between September 21, 2012, and December 31, 2014. These individuals will finally be given a fresh start, unburdened by the weight of their student loans.
The cancellation of their debts stems from the University of Phoenix’s false national ad campaigns, which claimed partnerships with thousands of corporations, including Fortune 500 companies, that would purportedly enhance students’ employment prospects. However, in a multiyear investigation conducted by the Federal Trade Commission (FTC), it was revealed that these claims were utterly misleading.
The FTC’s investigation ultimately led to a $191 million settlement with the University of Phoenix in 2019. The evidence obtained through this investigation, including internal emails and recorded phone calls, vividly showcased the falsity of the university’s claims regarding corporate relationships. Such deceptive practices left thousands of students burdened with substantial debt and a sense of betrayal.
Impacted borrowers will receive notification of the debt cancellation in early October. Moreover, any remaining balances will be completely wiped out, providing immense relief to those who have been grappling with their student loans for years. Additionally, payments made towards these loans will be refunded, further rectifying the financial setbacks faced by the affected individuals.
With this significant step, the Biden administration is reaffirming its commitment to addressing the student loan crisis, which has become an increasingly alarming issue in the United States. By prioritizing the well-being of borrowers who were swindled by deceptive practices, the administration is taking noteworthy strides towards rectifying an unjust system.
The cancellation of $37 million in student debt for University of Phoenix students not only grants financial freedom to affected individuals, but it also serves as a stern warning to educational institutions engaging in deceitful practices. This move sends a clear message that misleading students, especially regarding future career prospects, will not go unpunished, protecting future generations from falling into similar traps.
As the Biden administration continues to prioritize initiatives aimed at easing the burden of student loans, this latest action underscores their commitment to creating a fairer and more equitable educational landscape for all.
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