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Biden administration writes off $6 billion in student loan debt for 200,000 borrowers

The Biden administration reached an agreement this week to forgive $6 billion in federal student loan debt for about 200,000 borrowers who primarily attended for-profit colleges.

The agreement covers more than 150 schools, including DeVry University, the University of Phoenix and the recently defunct ITT Technical Institute.

Another 68,000 borrowers who did not attend qualifying colleges will have their requests for relief expedited under the agreement.

Activists hold signs as they attend a student loan forgiveness rally on Pennsylvania Avenue and 17th Street near the White House on April 27, 2022 in Washington, DC. (Anna Moneymaker/Getty Images/Getty Images)

The lawsuit was originally filed in 2019 and argued that the Department of Education intentionally blocked the borrower’s defense process, which is how people seek relief if they think a college qu ‘they frequented made publicity misrepresentations.

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Eileen Connor, director of the Project on Predatory Student Lending, which represented the plaintiffs, celebrated the “momentous proposed settlement” on Thursday.

“This will not only help secure billions of dollars in debt forgiveness for defrauded students, but will map out a borrower defense process that is fair, just and effective for future borrowers,” she said in a statement. .

A hearing for a judge to give final approval of the deal is scheduled for July 28.

President Biden

President Biden speaks in the East Room of the White House in Washington, Tuesday, April 5, 2022. (AP Photo/Carolyn Kaster/AP Newsroom)

The deal comes weeks after the Biden administration announced it would forgive about $5.8 billion in debt for anyone who attended a Corinthian school.

Since the early days of the Biden administration, the progressive wing of the Democratic Party has been pushing the president to forgive $50,000 in student loan debt for each borrower.

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Biden has so far resisted those calls, but The Washington Post reported last month that the White House is considering canceling up to $10,000 in student debt for each borrower who earns less than $150,000 a year, or $300,000 combined for married couples.

The Associated Press contributed to this report.