Student Loan Forgiveness: The Debt That Won't Disappear

Imagine this scenario: You're a bright-eyed student, eager to get your degree and start building the life you've always dreamed of. So you take out loans to attend a for-profit college that promises big things but delivers little more than mountains of debt and worthless credentials. Sound like a nightmare? It's a reality for thousands of borrowers across the country. The latest twist in this saga came last week when nearly 800 defrauded student loan borrowers sent a letter to the Department of Education demanding immediate relief. They're joined by 26 organizations representing students, consumers, veterans, faculty and staff who want action on these cases that have dragged on for years. 'We write as 26 organizations representing students, consumers, veterans, faculty and staff, civil rights advocates, and researchers to encourage the Department of Education (the Department) to use its authority under the Higher Education Act to relieve the outstanding loan balances of defrauded borrowers who have waited years for the relief due them,' the letter dated August 29 said. The Biden administration has already forgiven billions in student debt for millions of borrowers, including those scammed by the likes of Art Institutes and Corinthian Colleges. But many more are still waiting, their futures on hold until they get some relief from these debts that were never meant to be theirs in the first place.

'These announced discharges, along with other actions such as the settlement agreement in Sweet v. Cardona, demonstrate the Biden-Harris administration's commitment to addressing loan debts of student borrowers who were the victims of predatory, abusive, and wasteful institutions,' the letter said. But there are still huge gaps. While Art Institutes borrowers saw their loans disappear, many other EDMC brands weren't part of that deal, even though they used the same shady practices to lure in students and line their own pockets. The letter calls for action on these cases too, as well as borrowers at Ashford University, schools operated by Perdoceo, Florida Career College and UEI College, Kaplan, Vatterott College and others known for systemic fraud against their students. Borrowers deserve a fresh start from debts they never should have had to take on in the first place. The Education Department has its work cut out for it, no doubt. But as Secretary Cardona said earlier this year when forgiving $25 billion worth of loans: 'Borrowers deserve a simplified and fair path to relief when they have been harmed by their institution's misconduct.' A close review showed these borrowers have been hurt, and the administration is committed to giving them a 'fresh start.' Let's hope that commitment extends to all those still waiting for justice.

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