Friday, February 18, 2022

Student Loan Cancellation

 2/17/22 Daily Caller:

The Biden administration announced Wednesday it will cancel $415 million in student debt for nearly 16,000 borrowers who claim they were misled by for-profit colleges.  

The loans for almost 16,000 former students will be canceled under a legal provision called the borrower defense to repayment, which allows students to have their debts erased if they prove a for-profit school defrauded them, the Department of Education (DOE) said in a press release.

The DOE found that DeVry University, Westwood College, ITT Technical Institute nursing school and Minnesota School of Business/Globe University provided false information regarding their graduates’ job placement.

I taught briefly at ITT Tech.  I do not know if they provided false information, but I have a story to tell.  I taught State and Local Government two semesters.  One student both semesters failed to complete the class and failed.  I asked the dean about this.  She told me the student would like drop out and be stuck with a $500 a month student loan payment, and no degree.  There seemed to be no concern about the amount of debt these students were accumulating with little or no chance of a career. 

Of course, the same is largely true of non-profits and public institutions. 

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