President Joe Biden cancels student loan debt for thousands - who is eligible?
Student loan debt is one of the biggest financial issues facing Americans right now - but thousands are due to pay less thanks to the intervention of Joe Biden
President Joe Biden and his Administration's Education Department have cancelled $72million worth of student loan debt for thousands of Americans.
Some 2,300 student borrowers from Ashford University in San Diego, California will no longer be in debt.
This is due to the non-profit organization being found to have “cheated” its students of their education.
Relief for those affected comes from approvals for borrower defence claims which students can submit if they believe they have been defrauded in some way.
If these defence claims by borrowers are accepted, students could see their loans for the school forgiven.
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Confirmation of the student loan debt forgiveness comes following a review by the Education Department brought against the university and parent firm Zovio.
The state of California put forward the case that Ashford misled its students by lying about tuition costs and the possibility of getting employed.
A judge found that the school made around 1.2 million misrepresentations to students and Ashford faces a civil penalty of $1.2million.
It should be noted that Ashford University and Zovio are appealing the decision in the courts.
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In a statement, Attorney General Rob Bonta of California praised President Biden for taking action to address the issue.
Attorney General Bonta shared: "What Ashford University did to its students was unconscionable and illegal.
“That's why the California Department of Justice took Ashford and its parent company to court.
“Ultimately, we prevailed, securing more than $22 million in penalties.
"I want to thank the Biden-Harris Administration for changing the lives of thousands of former Ashford students today. They have lived a nightmare for too long.”
Upon taking office, Democrat Joe Biden has made it his mission to tackle the issue of student loan debt in America.
Latest figures suggest that the federal student loan portfolio currently totals more than $1.6 trillion with around 43 million borrowers owing money.
Earlier this year, the Supreme Court slapped down on Biden’s attempt to relieve student loan debt by ruling the President does not have the power to authorize such a program.
Despite this, the White House has promised to look for alternative routes to further help student borrowers with their debt.
