The Biden administration is canceling nearly $37 million in federal student loan debt for over 1,200 borrowers who attended the University of Phoenix, citing the for-profit school's misleading of students about job prospects. This targeted approach to debt forgiveness comes after the Supreme Court blocked the administration's broader student loan forgiveness program. Since 2021, the administration has canceled over $117 billion of the nearly $1.7 trillion of outstanding federal student loan debt. Eligible borrowers will be notified by early October, and their loans will be put in forbearance until officially canceled. Other affected students can still apply for debt relief under the borrower defense program.
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.
The Biden administration is canceling $72 million in federal student loan debt for over 2,300 borrowers who attended the for-profit Ashford University in California. This is part of the borrower defense to repayment program, which allows borrowers to seek debt relief if they were misled or defrauded by their college. The Department of Education found that Ashford University made substantial misrepresentations to borrowers, and the school is now known as the University of Arizona Global Campus. The Biden administration has approved the cancellation of over $116 billion in student loan debt for more than 3.4 million people, with a focus on borrowers who were misled by for-profit colleges.
