Education Secretary Miguel Cardona answers questions with President Joe Biden as they leave an event … [+]
The Education Department is sending mass notices to borrowers who were approved for student loan forgiveness as a result of alleged school misconduct. Hundreds of thousands of borrowers will not have to pay back their student loans under a group discharge initiative.
“The Department of Education… has determined that the loan(s) you received… are eligible for full loan discharge,” says an email sent to thousands of borrowers. “This means the remaining balance on the loan(s) will be forgiven. You do not have to make any more payments on the loan(s).”
The notices are distinct from a separate batch of emails being sent to borrowers approved for President Biden’s one-time student loan cancellation plan, which remains blocked by federal courts.
Here’s what borrowers should know.
Student Loan Forgiveness Due to School Misconduct
The Biden administration is providing the mass student loan cancellation relief through Borrower Defense to Repayment, a program designed to remedy school misconduct related to false promises about core elements of educational programs.
In June, the administration announced that 560,000 borrowers who attended Corinthian…
