{"id":2017889,"date":"2023-08-31T10:07:01","date_gmt":"2023-08-31T14:07:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-cancels-72-million-in-loans-for-2300-student-borrowers\/"},"modified":"2023-08-31T10:09:20","modified_gmt":"2023-08-31T14:09:20","slug":"biden-cancels-72-million-in-loans-for-2300-student-borrowers","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-cancels-72-million-in-loans-for-2300-student-borrowers\/","title":{"rendered":"Biden forgives $72M in loans for 2.3K student borrowers."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fbiden-cancels-72-million-in-loans-for-2300-student-borrowers%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2017889&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div data-post-content=\"true\" class=\"post_content\" id=\"post_content\">\n<h2>The Biden Administration Approves\u2062 $72\u200c Million Student Loan Forgiveness\u2064 Initiative<\/h2>\n<p>The Biden\u200c administration has approved a <strong>$72\u200c million dollar student loan forgiveness initiative<\/strong> aimed at providing \u2064relief for\u200b students who were defrauded \u200bby an \u200conline school.<\/p>\n<p>The loan forgiveness\u200c will \u200dbe \u2062applicable to over 2,300 students who attended Ashford \u2063University, a former online\u200d for-profit school \u2064based in San Diego, California, said an Aug. 30 press release by the U.S. \u200cDepartment of Education (DOE). The \u200bloan\u2063 forgiveness has been approved under the \u201cborrower defense\u201d student aid \u2064program that has been \u200bin place\u200b for decades. Under \u200dthe program, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fmr-white-house-economic-adviser-kudlow-slams-sen-warrens-wealth-tax\/\" title=\"Fmr. White House economic adviser Kudlow slams Sen. Warren\u2019s wealth tax\">student loan borrowers<\/a> who were\u2063 misled \u200bby for-profit colleges could apply for forgiveness.<\/p>\n<p>The loan \u200dforgiveness was approved \u200dafter the\u200c DOE reviewed evidence presented by the California\u200d Department of\u200b Justice (DOJ) in its\u2063 successful 2017 lawsuit against Ashford and\u2062 parent \u2062firm Zovio.<\/p>\n<blockquote>\n<h3>Related Stories<\/h3>\n<ul>\n<li>\n        <a href=\"http:\/\/www.theepochtimes.com\/us\/federal-appeals-court-reinstates-trump-era-ban-on-student-loan-collection-fees-5483309\">Federal Appeals Court Reinstates\u2062 Trump-Era Ban on \u2064Student Loan Collection Fees<\/a><br \/>\n        <br \/>\n        <span class=\"text-comp-caption\">8\/30\/2023<\/span>\n      <\/li>\n<li>\n        <a href=\"http:\/\/www.theepochtimes.com\/us\/graduate-student-charged-with-murder-in-killing-of-university-of-north-carolina-faculty-member-5482443\">Graduate Student Charged With Murder in Killing of\u200c University of North Carolina Faculty Member<\/a><br \/>\n        <br \/>\n        <span class=\"text-comp-caption\">8\/29\/2023<\/span>\n      <\/li>\n<\/ul>\n<\/blockquote>\n<p>The\u2062 lawsuit accused Ashford of engaging in \u200bdeceptive practices to \u200dmislead students. \u200dOn March 3, 2022, a court ruled in favor of the California DOJ, judging that Ashford made over 1.2 million \u2063misleading \u200crepresentations nationwide to prospective students.<\/p>\n<p>Based on its review of the case, the DOE approved\u200c loan forgiveness for Ashford\u2019s student borrowers who filed for debt relief under the\u200c <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-administration-cancels-4-billion-in-itt-tech-student-loans\/\" title=\"Biden Administration Cancels  Billion In ITT Tech Student Loans\">borrower defense program<\/a>.\u200b The relief is applicable to borrowers \u2063who enrolled in Ashford between\u2063 March 1, 2009, and April 30, 2020.<\/p>\n<p>\u201cAs the California Department\u200d of Justice proved in court,\u200d Ashford relied extensively \u200con high-pressure and deceptive \u200drecruiting \u200dtactics to lure students,\u201d said U.S.\u2063 Under Secretary \u2063of Education \u200bJames Kvaal.<\/p>\n<p>The\u200c $72\u200b million forgiveness announcement\u200b comes days after dozens\u200c of Democrats wrote a letter (<a href=\"https:\/\/www.warren.senate.gov\/imo\/media\/doc\/2023.08.23%20Letter%20to%20POTUS%20re%20Student%20Debt%20Cancellation.pdf\" target=\"_blank\" rel=\"noopener\">pdf<\/a>) to\u2064 President Biden asking that\u2064 he \u2064\u201ccontinually\u2063 find ways \u200dto use your authority \u2063to bring down \u2064student debt\u201d after the \u200dSupreme Court earlier\u200d blocked the government from implementing a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-cancels-72-million-in-loans-for-2300-student-borrowers\/\" title=\"Biden forgives M in loans for 2.3K student borrowers.\">massive student\u200d debt forgives scheme<\/a>.<\/p>\n<p>A few\u200c weeks earlier <a href=\"https:\/\/www.theepochtimes.com\/us\/supreme-court-strikes-down-biden-student-loan-forgiveness-program-5364291\" target=\"_blank\" rel=\"noopener\">on June 30<\/a>, \u2064SCOTUS had struck down the Biden administration\u2019s plan \u2062to cancel as much\u200d as $20,000 in loan principal for 40 million student borrowers.<\/p>\n<p>The Congressional Budget\u200d Office (CBO) had estimated that \u200bthis forgiveness plan would cost around $400 billion. But an estimate from the Wharton School put the price tag higher at over $1 \u200btrillion.<\/p>\n<h2>Borrower Defense Injunction<\/h2>\n<p>The \u201cborrower defense\u201d \u200dprogram that the DOE is using to discharge\u2064 debts of Ashford students recently faced a setback from a \u200ccourt.<\/p>\n<p>New rules regarding the borrower defense program were set \u200dto come into effect on July 1.<\/p>\n<div>\n<figure style=\"width:600px\" class=\"alignnone\"><figcaption>Student loan debtors hold a rally in front of\u200d the\u200d White House to\u2062 celebrate President Joe Biden&#8217;s intent \u200cto <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/democrats-push-for-student-debt-forgiveness-would-cost-taxpayers-millions\/\" title=\"Democrats push for student debt forgiveness, would cost taxpayers millions\">cancel student debt<\/a>, \u200dwhich was later blocked by the Supreme Court on Aug. 24, 2022. (Paul Morigi\/Getty Images for We \u2062the \u206345m)<\/figcaption><\/figure>\n<\/p><\/div>\n<p>However, the New Orleans-based U.S. Court of Appeals for the 5th \u2063Circuit issued\u200c an <a href=\"https:\/\/www.theepochtimes.com\/us\/court-freezes-bidens-student-debt-relief-scheme-for-certain-borrowers-5449546\" target=\"_blank\" rel=\"noopener\">injunction<\/a> against\u200b the new rules on Aug. 7 in a case brought \u200bforward by the Career Colleges &#038; Schools\u2064 of \u200cTexas (CCST) which represents more\u2062 than 70 for-profit educational institutions \u2063in the state.<\/p>\n<p>CCST argued that\u200c the new rules\u200c would \u200bno longer require\u2062 borrowers to prove individualized harm in most \u2064circumstances and place an \u2062unfair cost burden on educational institutions.<\/p>\n<p>On\u2064 the \u200cStudent Aid website, the DOE states that it will not judge \u201cany borrower defense applications under\u2063 the latest \u2064rule \u200dunless and until the \u2063effective date is reinstated.\u201d<\/p>\n<p>The new \u200brules would only apply to \u200c\u201call claims pending on or received on or after July \u20631, 2023,\u201d according to a \u2063DOE Fact Sheet.<\/p>\n<p>In its Aug. 30 press release, the DOE \u200dsaid that it had approved the findings related to Ashford student debt forgives\u200d prior to July 1, 2023. Plus, \u201cthis action covers\u2062 loans under the 1995 or\u2063 2016 regulation\u201d and\u2064 not under the\u200b July 1, 2023, regulation that has been delayed by the injunction.<\/p>\n<h2>The Ashford Case<\/h2>\n<p>In the Ashford case,\u2063 the\u200d DOE \u200cfound that the school had engaged in \u201cextensive \u2063substantial misrepresentations.\u201d<\/p>\n<p>Recruiters told students they would be able to work as teachers, nurses, \u200csocial workers, and\u2062 drug and alcohol counselors even though Ashford never obtained the necessary state approval or\u200d accreditation to allow students to enter these professions.<\/p>\n<p>Ashford\u2019s recruiters \u201calso lied\u200c about the cost \u2063to attend Ashford, \u2064the\u2062 amount and type \u200dof financial aid students would receive, and the amount\u2063 of\u200d debt students would accumulate,\u201d the \u2063DOE stated in its press release.<\/p>\n<p>Recruiters misled students about the time it would take to obtain an Ashford degree. Compar<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>The Biden administration has given the green light to a $72 million student loan forgiveness plan. It targets students who were deceived by an online school, specifically Ashford University. Over 2,300 former attendees of this for-profit institution in San Diego, California, will benefit from this initiative, as stated in an Aug. 30 press release.<\/p>\n","protected":false},"author":186,"featured_media":2017890,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2017889","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2017889","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/186"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2017889"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2017889\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2017890"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2017889"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2017889"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2017889"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}