The trickle of Student Loan Forgiveness keeps coming as The US Department of Education announced they will discharge another $415 million in student debt held by borrowers who said they were defrauded by for-profit schools. They claimed the schools misrepresented their graduates’ employment prospects scamming there incoming students.
Nearly 16,000 loans for former students are being forgiven under the borrower defense to repayment, a legal provision which allows students to have their debts erased if they prove that their schools defrauded them.
This includes 1,800 former DeVry University students who will receive “approximately $71.7 million in full borrower defense discharges.” The US Department of Education determined the university gave widespread misleading information about job placement rates.
In addition, there will also be “$343.7 million in borrower defense discharges to almost 14,000 borrowers.” This includes claims related to new findings at Westwood College, ITT Technical Institute, and Minnesota School of Business/Globe University. Check out the full press release here!