This week, the Biden administration agreed to cancel about $6 billion in student debt, granting relief to 200,000 college borrowers.
The Department of Education reached a settlement agreement in a class-action lawsuit brought by student borrowers. A federal judge must approve the deal before it goes into effect.
DOE had already determined that more than one hundred for-profit schools had committed fraud or material misrepresentations to some of their students. Students who attended those schools and filed loan forgiveness applications will see their student loans wiped off the books.
The proposed settlement agreement is especially significant because it involves so many for-profit schools. The rogue's list of defrauders includes the usual suspects: beauty schools, culinary schools, and art institutions.
But DOE's list also includes some prominent for-profit universities. The University of Phoenix, DeVry University, Capella University, and Grand Canyon University made the list.
In addition, DOE concluded that four for-profit law schools made misrepresentations to their students: Arizona Summit Law School, Charlotte School of Law, Florida Coastal Law School, and Western State University College of Law. And at least one medical school, Ross University School of Medicine, got tagged.
Added to the $25 billion student debt forgiven in earlier actions, President Biden's Department of Education has forgiven a total of $29 billion in college loans.
This latest development is just cause for celebration. More than one million students have now gotten some debt relief, which they richly deserve.
Nevertheless, when I look at the list of for-profit schools accused of making fraudulent misrepresentations, I can't help but wonder why the U.S. Department of Education keeps shoveling billions of dollars a year into dodgy for-profit colleges.
|Round up the usual suspects.|