Does Biden’s $1 billion in canceled student loans set the stage for mass debt forgiveness? – By Lance Lambert (Fortune) / Mar 26 2021
Around 72,000 borrowers caught a break last week: The U.S. Department of Education announced it will forgive student loan debt for students who attended colleges that used deceptive or predatory practices. That wipes out around $1 billion in debt held by borrowers who attended now defunct for-profit colleges like ITT Technical Institute and Corinthian Colleges.
During the final years of the Barack Obama presidency, the Department of Education tried to wipe out that debt, however, the Donald Trump administration limited the scope of the forgiveness. The decision announced last week is a reversal back to the Obama-era policy of granting full debt forgiveness to defrauded borrowers.
But this isn’t the massive debt cancellation that progressives are seeking. Indeed, this forgiveness represents only a tiny fraction of outstanding college debt: Just 0.05% of the more than $1.7 trillion total student loan debt. Or $1 in $1,700.
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