US President Joe Biden's administration plans to cancel a $ 6 billion student loan to 200,000 borrowers who allegedly been fooled by the university Said that.
A settlement agreement between the Borrower and the US Department of Education will be submitted to the US District Court in Northern California on Wednesday and requires the approval of a federal judge.
Student debt forgiveness has become a priority for many liberals and has become popular among young, highly educated voters who are democratic-minded before the November midterm elections. rice field.
According to Educationdata.org, about 43 million Americans have federal student loan debt.
According to the settlement agreement submitted to the court, these borrowers' loans will be completely abolished and all payments made by the borrowers will be refunded.
The proceedings from the borrower accused the Biden administration and former President Donald Trump of illegally postponing the proceedings against the borrower's application filed with the Ministry of Education for debt relief for years.
In a statement Thursday, Secretary of Education Miguel Cardona described the settlement as "fair and impartial to all parties" and "billions of dollars in automatic bailout" to 200,000 borrowers. Said to provide.
A project on predatory student lending on behalf of students across the United States to combat student debt described the settlement as "momentary."
The Biden administration had previously approved $ 25 billion of student debt forgiveness for about 1.3 million borrowers.
The administration was reluctant to unilaterally cancel the debt of a university owned by the US government. Instead, the president had previously asked Congress to pass a bill that would allow him debt to sign.
