Biden Government Releases $ 500 Million Student Loan Debt: This Is Who Is Qualified
WASHINGTON – The US Department of Education under the direction of President Joe Biden recently announced That the 18,000 students defrauded by the ITT Technical Institute will have their student loans canceled. In total, over $ 500 million in student debt was canceled, in the amount of an average of nearly $ 28,000 per borrower.
The move is part of the Borrower Defense Programwho have granted loan repayment to students who feel misled by a college. To date, the Biden government has canceled $ 1.5 billion in student loans for approximately 90,000 borrowers under this program.
Former ITT students said the for-profit institute, which closed in 2016, misrepresented its employment prospects as well as credit transfer. The Department of Education found that the institute misrepresented the earning potential of graduating from ITT; In reality, ITT graduates said it was harder to find employment when their employment was included on a resume.
“Many of these borrowers have long been waiting for relief and we need to work quickly to make decisions for those whose claims are pending,” Education Minister Miguel Cardona said in a statement. “This work also underscores the need for ongoing accountability so that institutions will never again be able to commit this widespread deception.”
While the duped ITT graduate’s loans have been repaid, millions of other Americans are still having to repay their student loans. More comprehensive student loan waiver measures are still out of reach. So don’t wait for your loan to be paid off if you are struggling to repay your college debt. Instead, take advantage of the record-low refinancing rates for student loans Save money on your private student loan.
Here’s how to find out if student loan refinancing is right for you
Student loan refinancing can help some borrowers pay off their loans faster and save money with a lower interest rate, but it isn’t for everyone.
It is not advisable, Refinance federal student loans, for example, as doing so will lose you government safeguards like income-based repayment and interest-free COVID-19 forbearance. It could even leave you ineligible if the federal government decides to cancel the student loan debt in the future.
FREE DOWNLOAD: Get breaking news in the FOX6 News app for iOS or Android
However, student loan borrowers who have personal credit debt should consider refinancing while interest rates are at record lows. That way, you can lower your student loans or pay off your personal loans faster. Cancellation of the student loan does not apply to private loans, so there is no risk of losing benefits due to the refinancing. You can Compare student loan refinancing rates via multiple lenders simultaneously via the Credible online marketplace
Are you still not sure whether refinancing makes sense?
Refinancing student loans can save borrowers thousands of dollars over the course of loan repayment. It is important to weigh the pros and cons of this approach and be aware that it does not apply to each individual’s personal financial situation.
Those who refinanced their personal student loans with Credible for a shorter term saved an average of $ 17,344. Find out if student loan refinancing is a smart move for you by a. use Student loan payment calculator.
And if you still have questions, Contact an experienced student loan consolidation clerk at Credible to learn more.
Do you have a finance-related question but don’t know who to contact? Send an email to the credible money expert at [email protected] and your question could be answered by Credible in our Money Expert section.
For more, visit FOXBusiness.com.