"Biden administration forgives millions in student debt for defrauded borrowers, while system faces challenges"

The Biden administration has announced the forgiveness of nearly $37 million in student debt for over 1,200 students who attended the University of Phoenix. The relief is being provided to borrowers who applied for borrower defense discharges between September 2012 and December 2014. The University of Phoenix misled students through false advertisements, promising improved job prospects through partnerships with corporations. The Federal Trade Commission's investigation into the university resulted in a $191 million settlement in 2019. Borrowers will be notified of the relief in early October, and any remaining loan balances will be canceled. The Biden administration has already canceled over $117 billion in student debt for 3.4 million borrowers.