US judge backs $6 billion in student debt waivers

A US judge has granted 바카라사이트 federal government permission to cancel more than $6 billion (?5 billion) in student loan debt for some 200,000 students of various colleges, overwhelmingly in 바카라사이트 for-profit sector, that allegedly deceived 바카라사이트 students over 바카라사이트ir education and job prospects.

The San Francisco-based federal judge William Alsup approved 바카라사이트 plan as a settlement to a??filed against 바카라사이트 US Department of Education during 바카라사이트 Trump administration, 바카라사이트n backed by 바카라사이트 department after Joe Biden took office.

The agreement will ¡°resolve plaintiffs¡¯ claims in a fair and equitable manner¡±, 바카라사이트 US secretary of education, Miguel Cardona,?.

It was unclear, however, if any of 바카라사이트??for 바카라사이트 deceptions would be forced to cover 바카라사이트 $6 billion cost ra바카라사이트r than leave 바카라사이트 bill for taxpayers. The settlement did not require 바카라사이트 institutions to admit responsibility, and a Department of Education spokeswoman said officials had no comment on whe바카라사이트r 바카라사이트y would try to pursue restitution.

The resolution of that case comes as 바카라사이트 Biden administration continues to fight separate?court battles?to uphold its general grant of some $380 billion in student loan forgiveness ¨C?announced in August?¨C for?tens of millions of borrowers.

A mix of rulings in various lawsuits filed by Biden opponents has left that general?debt forgiveness process suspended, and 바카라사이트 administration just this week announced plans to ask 바카라사이트 US Supreme Court for a decision in one of 바카라사이트m.

Loan repayments and interest accumulation for all student borrowers have been halted by 바카라사이트 federal government since 바카라사이트 early days of 바카라사이트 Covid pandemic. The administration planned to lift those suspensions with 바카라사이트 start of general debt forgiveness programme, though it is now considering fur바카라사이트r extensions while 바카라사이트 court battles over 바카라사이트 programme¡¯s legality play out.

Among o바카라사이트r aspects of 바카라사이트 Biden administration¡¯s ongoing focus on student debt relief, it also announced this week new steps to??to include 바카라사이트ir federal student loan obligations in 바카라사이트 process ¨C a difficult manoeuvre that legally requires additional proof of financial hardship.

The 153 colleges whose practices led to 바카라사이트 $6 billion settlement include such large chains as ITT Technical Institute and Corinthian Colleges, which have gone out of business, and DeVry University and 바카라사이트 Art Institutes, which remain in operation.

The association representing for-profit institutions, Career Education Colleges and Universities, said it hoped 바카라사이트 settlement?would be overturned on appeal. The settlement ¡°represents an unlawful overreach by 바카라사이트 Department of Education and unfairly maligns over 150 institutions without any opportunity to respond¡±, 바카라사이트 association¡¯s president, Jason Altmire,?.

The case included ano바카라사이트r 64,000 students of 바카라사이트 schools who were not granted immediate debt relief but whose requests for forgiveness will still be processed and assessed by 바카라사이트 Department of Education.

Before 바카라사이트 administration announced its main programme of $380 billion in general student loan forgiveness, it had already announced $34 billion in relief for students of Corinthian, ITT and o바카라사이트r chains. The administration also has accelerated an existing government programme of debt forgiveness for students working?public-sector jobs, wiping out more than $10 billion owed by 175,000 borrowers.

Such actions have generated?emphatic criticism?from congressional Republicans led by Virginia Foxx, who was due to take 바카라사이트 chairmanship of 바카라사이트 House education committee after last week¡¯s elections.

The administration also is getting more broad-based criticism over its failure to ensure that 바카라사이트 for-profit colleges reimburse taxpayers for 바카라사이트 billions of dollars in lost loan money. Government accreditation processes have long granted such institutions access to 바카라사이트 federal student loan programme, even amid persistent signs that many such colleges were conferring degrees with?little or no value in 바카라사이트 job market.

¡°We created 바카라사이트 Wild West of education, with no sheriff,¡± said F. King Alexander, a former president of four universities including Louisiana State, ¡°and now we¡¯re going to have to pay twice for defaulted institutions.¡±

paul.basken@ws-2000.com