Biden administration will soon roll out a sweeping new student loan forgiveness plan
Source: CNBC
Published Fri, Apr 5 2024 11:20 AM EDT
The Biden administration will soon roll out a sweeping new student loan forgiveness proposal that could impact millions of Americans.
Despite its smaller scope than President Joe Biden’s first education debt relief plan that the Supreme Court ultimately blocked, this new aid package could still forgive the debt for as many as 10 million Americans, according to one rough estimate by higher education expert Mark Kantrowitz.
Biden is planning to provide details of his new debt forgiveness plan during a speech Monday in Madison, Wisconsin, The Wall Street Journal reported on Friday. The president likely wants to start forgiving debt for many student borrowers ahead of the election in November.
Almost half of all voters, or 48%, say canceling student loan debt is an important issue to them in the 2024 presidential and congressional elections, a recent survey found.
Biden Clears $6 Billion in Debt for Closed Art School's Students
Source: Bloomberg
May 1, 2024 at 6:00 AM EDT
President Joe Biden is forgiving $6.1 billion in student loans for more than 300,000 attendees of the Art Institutes, a shuttered group of private colleges accused of fraud — the latest effort to deliver on his promise of easing student-loan debt ahead of November’s election.
The Art Institutes once operated 50 campuses across the US, but its doors closed abruptly in September 2023. The move will provide automatic relief for 317,0000 people who enrolled in the colleges between Jan. 1, 2004 and Oct. 16, 2017.
The Education Department said the schools and parent company Education Management Corp. “made pervasive and substantial misrepresentations to prospective students about postgraduation employment rates, salaries, and career services during that time.” Education Management Corp. sold the entity in 2017.
Biden’s action will automatically provide relief — even for those who have not yet applied for assistance. Forgiveness notices will be sent on Wednesday.
