The Trump administration on Monday has said that it will resume collecting defaulted student loans stating that "there will not be any mass loan forgiveness." It&rsquo;s expected to affect the more than 5 million borrowers who are in default. The Department of Education stated in a release that it&nbsp;has not collected on defaulted loans since March 2020. The Education Department urged student borrowers in default to contact the student aid office&rsquo;s Default Resolution Group and make a monthly payment, enroll in an income-driven repayment plan, or sign up for loan rehabilitation.
"American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies," said US Secretary of Education Linda McMahon in a statement.
The Education Department in its release also said, "The previous Administration failed to process applications for borrowers who applied for income-driven repayment and continued to push misguided &ldquo;on-ramps&rdquo; and illegal loan forgiveness schemes to win points with borrowers and mask rising delinquency and default rates."
<blockquote class="twitter-tweet publive-iframes-block publive-Twitter-block" contenteditable="false" width="600" height="400" id="PL_blockquote_block-mac2l611-wxz0ngq5-gr4wklri">
Starting today, May 5, the Department is resuming collections to protect taxpayers from shouldering the cost of student loans. Federal student loans are financed by the American people and must be paid back. <a href="https://t.co/yQmP12Tojy">https://t.co/yQmP12Tojy</a> <a href="https://t.co/BIlSBPLHhB">pic.twitter.com/BIlSBPLHhB</a>
&mdash; U.S. Department of Education (@usedgov) <a href="https://twitter.com/usedgov/status/1919422713854132389?ref_src=twsrc%5Etfw">May 5, 2025</a></blockquote>
Read More | <a href="https://www.wionews.com/trending/is-trump-okay-us-president-gives-offtrack-reply-to-alcatraz-question-internet-calls-him-a-word-salad-video-9038757">Is Trump okay? US president gives off-track reply to Alcatraz question, internet calls him 'a word salad' | VIDEO</a>
As part of its move to resume collection of these debts, the government has restarted the Treasury Offset Program, which collects debts by garnishing federal and state payments, such as tax returns or social security benefits.
"Going forward, the Department of Education, in conjunction with the Department of Treasury, will shepherd the student loan program responsibly and according to the law, which means helping borrowers return to repayment&mdash;both for the sake of their own financial health and our nation&rsquo;s economic outlook," it added.
This comes as the Trump administration attempts to <a href="https://www.wionews.com/world/biden-administration-forgives-an-additional-74-billion-in-student-loans-710506" rel="dofollow">roll back former President Joe Biden&rsquo;s policies</a>, including those around student loan forgiveness.
Read More | <a href="https://www.wionews.com/videos/why-pakistans-army-cant-handle-a-real-war-9039201">Why Pakistan's army can't handle a real war?</a>
<h2>Who will be affected by student loan collections?</h2>
Federal student loans go into default after 270 days without payment. When a student loan goes in default, it is reflected on the credit report, as per CNN. A student can check on the status of loan by reaching out to student loan servicer or visiting the Federal Student Aid website for more information.
According to the Department of Education&rsquo;s website, student can no longer receive deferment or forbearance, which allows them to temporarily stop making payments on your loan.&nbsp;
Read More | <a href="https://www.wionews.com/world/if-an-alien-breaks-law-trump-admins-big-warning-to-green-card-holders-says-its-a-privilege-not-a-right-9038846">'If an alien breaks law...': Trump admin's big warning to Green card holders, says it's a 'privilege, not a right'</a>

World | The Trump administration on Monday has said that it will resume collecting defaulted student loans stating that "there will not be any mass loan forgiveness."

The Trump administration on Monday has said that it will resume collecting defaulted student loans stating that "there will not be any mass loan forgiveness." It’s expected to affect the more than 5 million borrowers who are in default. The Department of Education stated in a release that it has not collected on defaulted loans since March 2020. The Education Department urged student borrowers in default to contact the student aid office’s Default Resolution Group and make a monthly payment, enroll in an income-driven repayment plan, or sign up for loan rehabilitation. "American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies," said US Secretary of Education Linda McMahon in a statement. The Education Department in its release also said, "The previous Administration failed to process applications for borrowers who applied for income-driven repayment and continued to push misguided “on-ramps” and illegal loan forgiveness schemes to win points with borrowers and mask rising delinquency and default rates." Starting today, May 5, the Department is resuming collections to protect taxpayers from shouldering the cost of student loans. Federal student loans are financed by the American people and must be paid back. https://t.co/yQmP12Tojy pic.twitter.com/BIlSBPLHhB — U.S. Department of Education (@usedgov) May 5, 2025 Read More | Is Trump okay? US president gives off-track reply to Alcatraz question, internet calls him 'a word salad' | VIDEO As part of its move to resume collection of these debts, the government has restarted the Treasury Offset Program, which collects debts by garnishing federal and state payments, such as tax returns or social security benefits. "Going forward, the Department of Education, in conjunction with the Department of Treasury, will shepherd the student loan program responsibly and according to the law, which means helping borrowers return to repayment—both for the sake of their own financial health and our nation’s economic outlook," it added. This comes as the Trump administration attempts to roll back former President Joe Biden’s policies, including those around student loan forgiveness. Read More | Why Pakistan's army can't handle a real war? Who will be affected by student loan collections? Federal student loans go into default after 270 days without payment. When a student loan goes in default, it is reflected on the credit report, as per CNN. A student can check on the status of loan by reaching out to student loan servicer or visiting the Federal Student Aid website for more information. According to the Department of Education’s website, student can no longer receive deferment or forbearance, which allows them to temporarily stop making payments on your loan. Read More | 'If an alien breaks law...': Trump admin's big warning to Green card holders, says it's a 'privilege, not a right'

Took student loan in US? It's time to pay back or Trump admin will deduct it from your salary: All you need to know

In a big relief for students in the United States, Joe Biden's Administration will cancel $7.4 billion worth of debt for over 200,000 borrowers. This is the the latest move in a series of debt cancellations the US president is tapping into young voters with ease in debt that he says would benefit over 23 million Americans.

US: Biden's debt relief for students

In a bid to woo the young generation in the upcoming general elections, United States President Joe Biden made another attempt at student loan cancellation.&nbsp;

With the new plan, President Biden is hoping to deliver on a major campaign promise, which he has so far not been able to fulfil.&nbsp;

Biden, on his visit to Wisconsin on Monday (April 8), gave a detailed proposal as per which the debt loan of around 25 million Americans will be cancelled.

For months, the plan is being worked out after the first attempt of Biden at mass cancellation was rejected by the Supreme Court. The decision of the court was called by Biden a "mistake", as he gave orders to the Education Department to make a new plan by using a different legal authority.&nbsp;

In comparison to his original plan, Biden's latest proposal is more targeted and focused on those for whom student loan is a major hurdle.

Also Read:&nbsp;<a href="https://www.wionews.com/business-economy/biden-administration-to-grant-samsung-a-66-bn-subsidy-for-texas-chip-expansion-709238">Biden administration to grant Samsung a $6.6 bn subsidy for Texas chip expansion</a>

The plans, which were detailed by presumptive Democratic presidential nominee Biden in Madison, Wisconsin, included cancelling up to $20,000 of accrued and capitalised interest for borrowers, without taking into consideration their income.

According to the Biden administration, this will cancel the entire interest for 23 million borrowers.

<h2>Who will benefit from Biden's new proposal?&nbsp;</h2>

The new proposal of Biden will offer cancellation of loans to five categories of borrowers.&nbsp;

According to the proposal, the student loan of those borrowers whose debt has grown due to unpaid interest will be cancelled.

The government will cancel around $20,000 in interest for Americans who currently owe&nbsp;way more than what they had borrowed originally.&nbsp;

However, this cap will not be applicable to individuals who earn less than $120,000 every year or couples whose income is less than $240,000 and have enrolled themselves in an income-driven repayment plan.

Watch:&nbsp;US: Donald Trump says states should decide abortion rights

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According to the Education Department, 25 million people will be eligible for that relief, which includes 23 million whose interest will be completely erased.

In the new proposal, the loans will also get cancelled for the borrowers who are eligible for different federal forgiveness programmes but have not applied. It is also applicable to the Public Service Loan Forgiveness programme and income-driven repayment plans.

The debt of the borrowers, who have been repaying undergraduate loans for 20 years or more, will be cancelled. Those who have been paying graduate school debt for the last 25 years will also get relief as per the proposal.&nbsp;

The Biden administration has claimed to cancel the loans of more than two&nbsp;million people.&nbsp;

(With inputs from agencies)

In a bid to woo the young generation in the upcoming general elections, United States President Joe Biden made another attempt at student loan cancellation. With the new plan, President Biden is hoping to deliver on a major campaign promise, which he has so far not been able to fulfil.

In a bid to woo the young generation in the upcoming general elections, United States President Joe Biden made another attempt at student loan cancellation. With the new plan, President Biden is hoping to deliver on a major campaign promise, which he has so far not been able to fulfil. Biden, on his visit to Wisconsin on Monday (April 8), gave a detailed proposal as per which the debt loan of around 25 million Americans will be cancelled. For months, the plan is being worked out after the first attempt of Biden at mass cancellation was rejected by the Supreme Court. The decision of the court was called by Biden a "mistake", as he gave orders to the Education Department to make a new plan by using a different legal authority. In comparison to his original plan, Biden's latest proposal is more targeted and focused on those for whom student loan is a major hurdle. Also Read: Biden administration to grant Samsung a $6.6 bn subsidy for Texas chip expansion The plans, which were detailed by presumptive Democratic presidential nominee Biden in Madison, Wisconsin, included cancelling up to $20,000 of accrued and capitalised interest for borrowers, without taking into consideration their income. According to the Biden administration, this will cancel the entire interest for 23 million borrowers. Who will benefit from Biden's new proposal? The new proposal of Biden will offer cancellation of loans to five categories of borrowers. According to the proposal, the student loan of those borrowers whose debt has grown due to unpaid interest will be cancelled. The government will cancel around $20,000 in interest for Americans who currently owe way more than what they had borrowed originally. However, this cap will not be applicable to individuals who earn less than $120,000 every year or couples whose income is less than $240,000 and have enrolled themselves in an income-driven repayment plan. Watch: US: Donald Trump says states should decide abortion rights According to the Education Department, 25 million people will be eligible for that relief, which includes 23 million whose interest will be completely erased. In the new proposal, the loans will also get cancelled for the borrowers who are eligible for different federal forgiveness programmes but have not applied. It is also applicable to the Public Service Loan Forgiveness programme and income-driven repayment plans. The debt of the borrowers, who have been repaying undergraduate loans for 20 years or more, will be cancelled. Those who have been paying graduate school debt for the last 25 years will also get relief as per the proposal. The Biden administration has claimed to cancel the loans of more than two million people. (With inputs from agencies)

Biden plans to cancel student loan debts. Here's what it means for 25mn Americans

US President Joe Biden on Wednesday (Feb 21) announced he was extending his student loan forgiveness programme by cancelling loans of an additional 150,000 Americans worth $1.2 billion.&nbsp;

The announcement is aimed at Biden's vote bank of young voters who cast ballots for him in large numbers during the 2020 presidential election.&nbsp;&nbsp;

"While a college degree is still a ticket to a better life, that ticket is too expensive.&nbsp;And too many Americans are still saddled with unsustainable debt in exchange for a college degree," said Biden.

Despite the high-flying announcement, the debt relief only applies to those enrolled in a specific repayment plan who meet certain requirements.&nbsp;

The loan relief applies to those who enrolled in the voluntary Saving on a Valuable Education (Save) repayment plan and have been regularly making payments for at least 10 years, In addition, those who originally borrowed $12,000 or less for school are only allowed exemption under the scheme.&nbsp;

According to the Department of Education, 7.5 million people are enrolled in the repayment programme, which was created by the Biden administration.

Notably, the debt relief programme was not scheduled to kick into effect until July but the Biden administration last month said it would start ahead of schedule in February. Experts said the loan relief was a way for Biden to resurrect his plummeting approval ratings in the presidential race.&nbsp;

<a href="https://www.wionews.com/videos/joe-bidens-student-loan-deductions-to-affect-already-skyrocketing-inflation-509993">Watch | Joe Biden's student loan deductions to affect already skyrocketing inflation?</a>

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<h2>Biden's poll plank</h2>

After the new debt relief measure was announced, Biden's campaign shared a statement from Maxwell Frost, the first Generation Z member of the US Congress.&nbsp;

"The President's actions on student&nbsp;debt are in stark contrast with Trump, who spent his entire time in office sabotaging efforts to aid borrowers who are just trying to make ends meet," said the 27-year-old congressman from Florida.&nbsp;

<a href="https://www.wionews.com/world/joe-bidens-game-changing-student-loan-forgiveness-progamme-launched-8-million-applications-in-already-526307" target="_blank">Read more: Joe Biden's 'game-changing' student loan forgiveness progamme launched; 8 million applications in already</a>

Ever since the announcement regarding the programme was first made by Biden, Republicans have trashed it saying it is a waste of government funds that could be put to better use.

However, Biden has stuck with his poll promise and so far, nearly $138 billion of federal student loan debt has been cancelled for almost four million borrowers.&nbsp;

(With inputs from agencies)

&nbsp;

US President Joe Biden on Wednesday (Feb 21) announced he was extending his student loan forgiveness programme by cancelling loans of an additional 150,000 Americans worth $1.

US President Joe Biden on Wednesday (Feb 21) announced he was extending his student loan forgiveness programme by cancelling loans of an additional 150,000 Americans worth $1.2 billion. The announcement is aimed at Biden's vote bank of young voters who cast ballots for him in large numbers during the 2020 presidential election. "While a college degree is still a ticket to a better life, that ticket is too expensive. And too many Americans are still saddled with unsustainable debt in exchange for a college degree," said Biden. Despite the high-flying announcement, the debt relief only applies to those enrolled in a specific repayment plan who meet certain requirements. The loan relief applies to those who enrolled in the voluntary Saving on a Valuable Education (Save) repayment plan and have been regularly making payments for at least 10 years, In addition, those who originally borrowed $12,000 or less for school are only allowed exemption under the scheme. According to the Department of Education, 7.5 million people are enrolled in the repayment programme, which was created by the Biden administration. Notably, the debt relief programme was not scheduled to kick into effect until July but the Biden administration last month said it would start ahead of schedule in February. Experts said the loan relief was a way for Biden to resurrect his plummeting approval ratings in the presidential race. Watch | Joe Biden's student loan deductions to affect already skyrocketing inflation? Biden's poll plank After the new debt relief measure was announced, Biden's campaign shared a statement from Maxwell Frost, the first Generation Z member of the US Congress. "The President's actions on student debt are in stark contrast with Trump, who spent his entire time in office sabotaging efforts to aid borrowers who are just trying to make ends meet," said the 27-year-old congressman from Florida. Read more: Joe Biden's 'game-changing' student loan forgiveness progamme launched; 8 million applications in already Ever since the announcement regarding the programme was first made by Biden, Republicans have trashed it saying it is a waste of government funds that could be put to better use. However, Biden has stuck with his poll promise and so far, nearly $138 billion of federal student loan debt has been cancelled for almost four million borrowers. (With inputs from agencies)

Biden announces fresh student loan relief for 150,000 Americans

A month after a US court issued a stay on Joe Biden's ambitious student-loan forgiveness plan, the White House on Tuesday announced it will extend payment pause on federal student loans, up until June next year.

A month after a US court issued a stay on Joe Biden's ambitious student-loan forgiveness plan, the White House on Tuesday announced it will extend payment pause on federal student loans, up until June next year. The move is aimed at allowing the court to conduct its hearing in desired time as Biden's forgiveness plan remains blocked. “We’re extending the payment pause because it would be deeply unfair to ask borrowers to pay a debt that they wouldn’t have to pay, were it not for the baseless lawsuits brought by Republican officials and special interests,” said Miguel Cardona, education secretary in a statement. Read more: US court issues a stay order blocking Biden's student loan forgiveness plan Biden also took to Twitter to state that his debt relief plan was legal and that Republicans were the reason it had been embroiled in a legal slugfest. "I'm confident that our student debt relief plan is legal. But it’s on hold because Republican officials want to block it. That's why @SecCardona is extending the payment pause to no later than June 30, 2023, giving the Supreme Court time to hear the case in its current term," tweeted Biden. I'm confident that our student debt relief plan is legal. But it’s on hold because Republican officials want to block it. That's why @SecCardona is extending the payment pause to no later than June 30, 2023, giving the Supreme Court time to hear the case in its current term. pic.twitter.com/873CurlHFZ — President Biden (@POTUS) November 22, 2022 × Notably, if the Biden administration is still fighting the legal battle by June 30, 2023, the student loan payments will have to start two months after that. Ever since Covid struck the US, a pause on student loan payments has been put in place. The relief granted on Tuesday was the eighth time that the policy, first implemented in March 2020 has been extended. Watch | Joe Biden's student loan deductions to affect already skyrocketing inflation? × Last month, the eighth US Circuit Court of Appeals issued a stay on Biden's 'loan-forgiveness plan' after considering a lawsuit filed by a coalition of six Republican-led states viz. Arkansas, Iowa, Kansas, Nebraska, Missouri and South Carolina. Unveiled in August, the programme attempts to provide a $10,000 relief for borrowers with salaries less than $125,000. For recipients of Pell Grants, the relief doubles to $20,000. However, the Republicans are of the view that it will be a misuse of funds which will cost the exchequer more than $400 billion. (With inputs from agencies) WATCH WION LIVE HERE:

Biden administration extends student loan payment pause till June amid a legal battle

A US House of Representatives&nbsp;committee on Friday summoned former US President Donald Trump to appear before it and testify under oath, in relation to the events of January 6. In other news, Pakistan has been removed from&nbsp;Financial Action Task Force (FATF) grey list after spending several years there.

Click on headlines to read more:

<a href="https://www.wionews.com/world/house-panel-summons-trump-to-testify-in-relation-to-the-january-6-us-capitol-riots-527508">House panel summons Trump to testify in relation to January 6 US Capitol riot</a>

Former US President Donald Trump on Friday was served a subpoena by a nine-member House of Representatives committee to testify and provide documents related to the January 6 US Capitol riots, allegedly started by his supporters.&nbsp;

<img src="https://cdn.wionews.com/sites/default/files/styles/story_page/public/2022/10/05/301262-2022-09-27t215230z5lynxmpei8q0msrtroptp4usa-trump-defamation-lawsuit.JPG" />

<a href="https://www.wionews.com/world/us-court-puts-a-stay-on-bidens-student-loan-forgiveness-plan-527509">US court puts a stay on Biden's student loan forgiveness plan</a>

Days after launching the application portal for student-loan forgiveness, the Biden administration has been dealt a blow. Reportedly, a US appeals court on Friday issued a stay on the plan, temporarily blocking the federal government from cancelling any loans.&nbsp;

<img src="https://cdn.wionews.com/sites/default/files/styles/story_page/public/2022/10/13/303351-new-wion-12.png" />

<a href="https://www.wionews.com/south-asia/fatf-removes-pakistan-from-its-grey-list-after-four-years-527466">FATF removes Pakistan from its 'grey list' after four years, slams Russia for ongoing war in Ukraine</a>

The Financial Action Task Force (FATF) has removed Pakistan from the&nbsp;list of countries under “increased monitoring” — also known as the “grey List”. Since June 2018, Pakistan has been on the FATF's grey list for “shortcomings in its counter-terrorist funding and anti-money laundering regimes”.&nbsp;

<img src="https://cdn.wionews.com/sites/default/files/styles/story_page/public/2022/10/21/305431-00032jr7qd.jpg" />

<a href="https://www.wionews.com/world/more-than-12500-people-arrested-in-iran-protests-says-human-rights-group-527487">More than 12,500 people arrested in Iran protests, says human rights group</a>

A prominent human rights group said on Friday that around 12,500 people have been arrested and more than 250&nbsp;killed in the protests following the death of 22-year-old Mahsa Amini in Iran.&nbsp;

<img src="https://cdn.wionews.com/sites/default/files/styles/story_page/public/2022/10/21/305455-00032l262v.jpg" />

<a href="https://www.wionews.com/videos/uk-political-chaos-continues-penny-mordaunt-becomes-first-official-leadership-candidate-527502">WATCH | UK political chaos continues: Penny Mordaunt becomes first official leadership candidate</a>

The resignation of British Prime Minister, Liz Truss, has triggered yet another Tory leadership race and there is only one question on everybody's mind- who will be UK's next Prime Minister and who is going to succeed Liz Truss.

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A US House of Representatives committee on Friday summoned former US President Donald Trump to appear before it and testify under oath, in relation to the events of January 6.

A US House of Representatives committee on Friday summoned former US President Donald Trump to appear before it and testify under oath, in relation to the events of January 6. In other news, Pakistan has been removed from Financial Action Task Force (FATF) grey list after spending several years there. Click on headlines to read more: House panel summons Trump to testify in relation to January 6 US Capitol riot Former US President Donald Trump on Friday was served a subpoena by a nine-member House of Representatives committee to testify and provide documents related to the January 6 US Capitol riots, allegedly started by his supporters. US court puts a stay on Biden's student loan forgiveness plan Days after launching the application portal for student-loan forgiveness, the Biden administration has been dealt a blow. Reportedly, a US appeals court on Friday issued a stay on the plan, temporarily blocking the federal government from cancelling any loans. FATF removes Pakistan from its 'grey list' after four years, slams Russia for ongoing war in Ukraine The Financial Action Task Force (FATF) has removed Pakistan from the list of countries under “increased monitoring” — also known as the “grey List”. Since June 2018, Pakistan has been on the FATF's grey list for “shortcomings in its counter-terrorist funding and anti-money laundering regimes”. More than 12,500 people arrested in Iran protests, says human rights group A prominent human rights group said on Friday that around 12,500 people have been arrested and more than 250 killed in the protests following the death of 22-year-old Mahsa Amini in Iran. WATCH | UK political chaos continues: Penny Mordaunt becomes first official leadership candidate The resignation of British Prime Minister, Liz Truss, has triggered yet another Tory leadership race and there is only one question on everybody's mind- who will be UK's next Prime Minister and who is going to succeed Liz Truss. ×

Morning news brief: Trump to testify, FATF removes Pakistan from grey list and more

US President Joe Biden's much-touted student loan forgiveness is now live. On Monday, he lauded the official launch of the process, as the White House noted that more than eight million Americans have already enrolled in the&nbsp; programme during its soft launch.

"The new student loan application is now open. If you have federal student debt, please visit StudentAid.gov. It’s easy, simple and fast and it’s a new day for millions of Americans all across our nation," said Biden.

Watch |&nbsp;Joe Biden's student loan deductions to affect already skyrocketing inflation?

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He added that the "game-changing" portal's launch marks a "big step" that his administration has taken to "make a ticket to the middle class that folks can actually afford."

The website had its soft launch on Friday (14 October) and as per Biden it handled the initial applications without a glitch or any difficulty. The Friday launch allows application submissions but they were not processed till the official launch on Monday.

Also read |&nbsp;<a href="https://www.wionews.com/world/student-debt-cancellation-biden-waives-10000-in-student-loans-for-millions-509971">Student debt: Biden waives off $10,000 in loans for millions</a>

Unveiled in August, the programme will provide a $10,000 relief for borrowers with salaries less than $125,000. For recipients of Pell Grants, the relief doubles to $20,000.

As per AFP news agency, the plan is going to cost the government an estimated $400 billion. Republicans claim that this is a waste of government funds which could be put to better use.

Also read |&nbsp;<a href="https://www.wionews.com/world/us-probe-reveals-trump-aides-blocked-correct-information-on-covid-526275" hreflang="en">US probe reveals Trump aides blocked correct information on Covid</a>

The Hill reports that many conservative groups and Republican state officials have even filed lawsuits seeking to end the loan forgiveness programme.&nbsp;

However, <a href="https://www.wionews.com/topics/joe-biden">Biden</a> claims that contrary to Republican claims of the programme being too costly, it will be paid for because his efforts will help bring down the deficit.

(With inputs from agencies)

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US President Joe Biden's much-touted student loan forgiveness is now live. On Monday, he lauded the official launch of the process, as the White House noted that more than eight million Americans have already enrolled in the programme during its soft launch.

US President Joe Biden's much-touted student loan forgiveness is now live. On Monday, he lauded the official launch of the process, as the White House noted that more than eight million Americans have already enrolled in the programme during its soft launch. "The new student loan application is now open. If you have federal student debt, please visit StudentAid.gov. It’s easy, simple and fast and it’s a new day for millions of Americans all across our nation," said Biden. Watch | Joe Biden's student loan deductions to affect already skyrocketing inflation? He added that the "game-changing" portal's launch marks a "big step" that his administration has taken to "make a ticket to the middle class that folks can actually afford." The website had its soft launch on Friday (14 October) and as per Biden it handled the initial applications without a glitch or any difficulty. The Friday launch allows application submissions but they were not processed till the official launch on Monday. Also read | Student debt: Biden waives off $10,000 in loans for millions Unveiled in August, the programme will provide a $10,000 relief for borrowers with salaries less than $125,000. For recipients of Pell Grants, the relief doubles to $20,000. As per AFP news agency, the plan is going to cost the government an estimated $400 billion. Republicans claim that this is a waste of government funds which could be put to better use. Also read | US probe reveals Trump aides blocked correct information on Covid The Hill reports that many conservative groups and Republican state officials have even filed lawsuits seeking to end the loan forgiveness programme. However, Biden claims that contrary to Republican claims of the programme being too costly, it will be paid for because his efforts will help bring down the deficit. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Joe Biden's 'game-changing' student loan forgiveness progamme launched; 8 million applications in already

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 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 large chains like the Art Institutes and other campuses run by the Dream Center, whose operations abruptly collapsed in 2019, and those owned by Career Education Corp. The latter, at its peak, enrolled tens of thousands of students at more than 100 locations. The deal also includes a few colleges that are still operating, including the University of Phoenix, Grand Canyon University and DeVry University.

Education Secretary Miguel Cardona called the deal “fair and equitable for all parties.”

The Education Department granted relief to applicants from the schools included in the deal “based on strong indicia regarding substantial misconduct by listed schools, whether credibly alleged or in some instances proven,” according to the settlement papers filed with the U.S. District Court for the Northern District of California. Those borrowers’ loans will be fully eliminated, and any payments they made will be refunded.

The deal, which must be approved by a federal judge, was greeted with cheers and relief by borrowers. “This is probably the sexiest thing I’ve seen in a long time!” one posted in a Facebook group. “My school listed as a bad actor and my debt will be wiped out.”

The agreement is a major step toward resolving a problem that had stretched across three presidential administrations: a glut of relief claims from students who attended for-profit schools that saddled them with large bills for a subpar education.

A state and federal crackdown a decade ago led to enforcement actions against some of the industry’s most notorious operators, pushing several prominent chains into bankruptcy. But even after the schools disappeared, the debts that their former students incurred remained.

The Obama administration tried to address the problem by updating a federal program called borrower defense to repayment, which allows those who attended schools that broke state consumer protection laws or otherwise committed serious misdeeds to have their federal student loans eliminated.

However, Betsy DeVos, the education secretary under President Donald Trump, froze the program, calling it a “free money” giveaway. DeVos allowed hundreds of thousands of claims to stack up; in her final year in office, officials churned out mass denials.

The Biden administration revived the borrower defense program and used it earlier this month to wipe out nearly $6 billion in loans for 580,000 borrowers who attended Corinthian Colleges, a large chain that closed in 2015 after extensive allegations of illegal recruiting tactics. It also granted borrower defense claims at a half-dozen or so other schools.

But the mass denials under DeVos remained, as well as a queue of tens of thousands of pending relief applications, many of them years old. Wednesday’s deal would wipe out the denials, treating them as if they never happened. The deal also promises to resolve all applications that are not automatically granted — for those involving schools not on the settlement list — within 6 to 30 months.

“This momentous proposed settlement will deliver answers and certainty to borrowers who have fought long and hard for a fair resolution of their borrower defense claims after being cheated by their schools and ignored or even rejected by their government,” said Eileen Connor, director of the Project on Predatory Student Lending, which represented borrowers in the case.

The deal’s relief is mainly limited to those who submitted a borrower defense application on or before Wednesday. The Education Department must now decide if it will approve future claims from students who attended the schools that it has said acted illicitly.

President Joe Biden is still mulling a larger decision: whether to use executive action to make good on a campaign promise to cancel $10,000 in federal student loan debt for all borrowers. High inflation has intensified a debate among his advisers about the wisdom of such a move.

Theresa Sweet, one of the named plaintiffs in the class-action lawsuit, said she was stunned to achieve what she considered justice after years of stress and, as settlement talks advanced, the “roller-coaster ride of feeling certain the process would fall apart.”

Sweet graduated in 2006 from the Brooks Institute of Photography, a for-profit school owned by Career Education Corp. that closed in 2016. Saddled with debt from a program that promised students lucrative careers but offered them little actual training or support, she struggled after graduation to earn a living wage.

“I hope that the experience of each and every class member will serve as proof that fighting for your rights is something you should never be afraid to do,” she said in an email. “It has been too long a road, but I think we are finally where we needed to be all along.”

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 Wednesday, the latest move by the Biden administration to address the student loan crisis by eliminating some debts.

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 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 large chains like the Art Institutes and other campuses run by the Dream Center, whose operations abruptly collapsed in 2019, and those owned by Career Education Corp. The latter, at its peak, enrolled tens of thousands of students at more than 100 locations. The deal also includes a few colleges that are still operating, including the University of Phoenix, Grand Canyon University and DeVry University. Education Secretary Miguel Cardona called the deal “fair and equitable for all parties.” The Education Department granted relief to applicants from the schools included in the deal “based on strong indicia regarding substantial misconduct by listed schools, whether credibly alleged or in some instances proven,” according to the settlement papers filed with the U.S. District Court for the Northern District of California. Those borrowers’ loans will be fully eliminated, and any payments they made will be refunded. The deal, which must be approved by a federal judge, was greeted with cheers and relief by borrowers. “This is probably the sexiest thing I’ve seen in a long time!” one posted in a Facebook group. “My school listed as a bad actor and my debt will be wiped out.” The agreement is a major step toward resolving a problem that had stretched across three presidential administrations: a glut of relief claims from students who attended for-profit schools that saddled them with large bills for a subpar education. A state and federal crackdown a decade ago led to enforcement actions against some of the industry’s most notorious operators, pushing several prominent chains into bankruptcy. But even after the schools disappeared, the debts that their former students incurred remained. The Obama administration tried to address the problem by updating a federal program called borrower defense to repayment, which allows those who attended schools that broke state consumer protection laws or otherwise committed serious misdeeds to have their federal student loans eliminated. However, Betsy DeVos, the education secretary under President Donald Trump, froze the program, calling it a “free money” giveaway. DeVos allowed hundreds of thousands of claims to stack up; in her final year in office, officials churned out mass denials. The Biden administration revived the borrower defense program and used it earlier this month to wipe out nearly $6 billion in loans for 580,000 borrowers who attended Corinthian Colleges, a large chain that closed in 2015 after extensive allegations of illegal recruiting tactics. It also granted borrower defense claims at a half-dozen or so other schools. But the mass denials under DeVos remained, as well as a queue of tens of thousands of pending relief applications, many of them years old. Wednesday’s deal would wipe out the denials, treating them as if they never happened. The deal also promises to resolve all applications that are not automatically granted — for those involving schools not on the settlement list — within 6 to 30 months. “This momentous proposed settlement will deliver answers and certainty to borrowers who have fought long and hard for a fair resolution of their borrower defense claims after being cheated by their schools and ignored or even rejected by their government,” said Eileen Connor, director of the Project on Predatory Student Lending, which represented borrowers in the case. The deal’s relief is mainly limited to those who submitted a borrower defense application on or before Wednesday. The Education Department must now decide if it will approve future claims from students who attended the schools that it has said acted illicitly. President Joe Biden is still mulling a larger decision: whether to use executive action to make good on a campaign promise to cancel $10,000 in federal student loan debt for all borrowers. High inflation has intensified a debate among his advisers about the wisdom of such a move. Theresa Sweet, one of the named plaintiffs in the class-action lawsuit, said she was stunned to achieve what she considered justice after years of stress and, as settlement talks advanced, the “roller-coaster ride of feeling certain the process would fall apart.” Sweet graduated in 2006 from the Brooks Institute of Photography, a for-profit school owned by Career Education Corp. that closed in 2016. Saddled with debt from a program that promised students lucrative careers but offered them little actual training or support, she struggled after graduation to earn a living wage. “I hope that the experience of each and every class member will serve as proof that fighting for your rights is something you should never be afraid to do,” she said in an email. “It has been too long a road, but I think we are finally where we needed to be all along.”

Government to cancel $6 billion in student loans for defrauded borrowers

The Biden administration has waived off $5.8 billion in student loan debt for 560,000 borrowers who were defrauded by the now-defunct network Corinthian Colleges.

Making the announcement on Wednesday, the Department of Education described it as “the largest single loan discharge the department has made in history.”

Vice President Kamala Harris had initialled sued Corinthian when she was California’s attorney general after it came to the fore that these for-profit institutions engaged in widespread misconduct, deception, and other illegal practices.

Corinthian was founded in 1995, and by 2010, it had enrolled more than 100,000 students across 100 campuses. It was eventually closed in April 2015.

The Department of Education found that Corinthian Colleges misled prospective students about the ability to transfer credits and falsified its job placement rate.

"As of today, every student deceived, defrauded, and driven into debt by Corinthian Colleges can rest assured that the Biden-Harris administration has their back and will discharge their federal student loans," US Secretary of Education Miguel Cardona said in a statement.

"For far too long, Corinthian engaged in the wholesale financial exploitation of students, misleading them into taking on more and more debt to pay for promises they would never keep. While our actions today will relieve Corinthian Colleges' victims of their burdens, the Department of Education is actively ramping up oversight to better protect today's students from tactics and make sure that for-profit institutions – and the corporations that own them – never again get away with such abuse."

The latest move to relax student loans comes as the White House has been reportedly mulling whether to move ahead with broad-based student loan forgiveness.

Most recently, officials were leaning toward wiping out $10,000 for all borrowers who earn below $150,000, CNBC reported.

During his campaign trail, Biden proposed cancelling a minimum of $10,000 in student debt per person as a response to the pandemic, as well as forgiving all undergraduate tuition-related federal student debt from two- and four-year public colleges and universities for those borrowers earning up to $125,000 a year.

(With inputs from agencies)

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The Biden administration has waived off $5.8 billion in student loan debt for 560,000 borrowers who were defrauded by the now-defunct network Corinthian Colleges.

The Biden administration has waived off $5.8 billion in student loan debt for 560,000 borrowers who were defrauded by the now-defunct network Corinthian Colleges. Making the announcement on Wednesday, the Department of Education described it as “the largest single loan discharge the department has made in history.” Vice President Kamala Harris had initialled sued Corinthian when she was California’s attorney general after it came to the fore that these for-profit institutions engaged in widespread misconduct, deception, and other illegal practices. Corinthian was founded in 1995, and by 2010, it had enrolled more than 100,000 students across 100 campuses. It was eventually closed in April 2015. The Department of Education found that Corinthian Colleges misled prospective students about the ability to transfer credits and falsified its job placement rate. "As of today, every student deceived, defrauded, and driven into debt by Corinthian Colleges can rest assured that the Biden-Harris administration has their back and will discharge their federal student loans," US Secretary of Education Miguel Cardona said in a statement. "For far too long, Corinthian engaged in the wholesale financial exploitation of students, misleading them into taking on more and more debt to pay for promises they would never keep. While our actions today will relieve Corinthian Colleges' victims of their burdens, the Department of Education is actively ramping up oversight to better protect today's students from tactics and make sure that for-profit institutions – and the corporations that own them – never again get away with such abuse." The latest move to relax student loans comes as the White House has been reportedly mulling whether to move ahead with broad-based student loan forgiveness. Most recently, officials were leaning toward wiping out $10,000 for all borrowers who earn below $150,000, CNBC reported. During his campaign trail, Biden proposed cancelling a minimum of $10,000 in student debt per person as a response to the pandemic, as well as forgiving all undergraduate tuition-related federal student debt from two- and four-year public colleges and universities for those borrowers earning up to $125,000 a year. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Biden administration waives off $5.8 billion in student loans from college that Harris once sued

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