The Biden administration says students who were defrauded by their colleges and received only partial relief from their federal loans could now have them fully erased.
The action, announced Thursday, reverses a Trump administration policy. The Education Department says the change could lead to $1 billion in loans being canceled for 72,000 borrowers, all of whom attended for-profit schools.
The department says the action applies to students who already had their claims approved and received “less than a full loan discharge.” A senior department official briefing reporters says they are reviewing the backlog of claims yet to be decided and those that have been denied.