Story at a glance
- The Education Department on Friday forgave the loans of nearly 2,000 former students who were defrauded by for-profit colleges.
- Friday’s announcement follows the administration’s decision in June to forgive the loans of 18,000 former ITT Technical Institute students.
- The Biden administration has canceled more than $1.5 billion in student debt under the borrower defense program.
The Education Department on Friday forgave the loans of nearly 2,000 former students who were defrauded by for-profit colleges.
Around 1,800 borrowers who attended Westwood College, Marinello Schools of Beauty and the Court Reporting Institute had 100 percent of their loans forgiven on the grounds that the institutions misrepresented their value to students. The loans totaled more than $55 million.
“Today’s announcement continues the U.S. Department of Education’s commitment to standing up for students whose colleges took advantage of them,” U.S. Secretary of Education Miguel Cardona said in a press release.
“The Department will continue doing its part to review and approve borrower defense claims quickly and fairly so that borrowers receive the relief that they need and deserve,” Cardona continued. “We also hope these approvals serve as a warning to any institution engaging in similar conduct that this type of misrepresentation is unacceptable.”
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Roughly 1,600 claims targeted Westwood College, and the department found that the institution “engaged in widespread misrepresentations about the ability of students to transfer credits” at nearly all of its locations. Additionally, Westwood assured criminal justice students, especially in the Chicago area, their program would lead to jobs with the Chicago Police Department (CPD) In reality, CPD would not accept the credits.
The department additionally approved claims for 200 former Marinello students and 18 students defrauded by The Court Reporting Institute.
Friday’s announcement follows the administration’s decision in June to forgive the loans of 18,000 former ITT Technical Institute students. An Education Department review found that ITT made “repeated and significant misrepresentations” regarding students’ job prospects and earning potential. The investigation also concluded that course credits earned at ITT were difficult to transfer to other academic institutions. The for-profit college shut its doors in 2016.
The Biden administration has cancelled more than $1.5 billion in student debt under the borrower defense program.
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