Obama Takes Action on Student Debt


The Obama administration has promised to forgive $558 million in student debt to borrowers who claimed to be defrauded by Corinthian Colleges and ITT Technical Institutes.

Most loans are forgiven that fall under the “borrower defense” statue, which provides student debt relief to those who were unable to complete and fulfill their education due to the closing of schools.

Figures, updated in October, related to CCI claims reported at which time the department had approved about $247 million in loan relief for students who attended the former for-profit chain of schools.

Those who fall under the category of being defrauded by educational institutions also are exempt under the statue, which account for 6,300 ITT students thus far. To date, 28,000 total claims have been approved.

Students who had previously attended American Career Institute are additionally forgiven automatically, which accounts for another $30 million in federal loans.The Education Department revealed that they had contacted and notified those who have qualified for the claims they had filed, and borrowers will receive full dishrag relief within the next several weeks.

H/T: Washington Examiner

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