{"id":112534,"date":"2022-08-23T00:02:31","date_gmt":"2022-08-23T04:02:31","guid":{"rendered":"https:\/\/www.thecollegefix.com\/?p=112534"},"modified":"2022-08-22T23:52:02","modified_gmt":"2022-08-23T03:52:02","slug":"taxpayers-have-already-absorbed-32-billion-in-student-loans-under-biden-administration","status":"publish","type":"post","link":"https:\/\/www.thecollegefix.com\/taxpayers-have-already-absorbed-32-billion-in-student-loans-under-biden-administration\/","title":{"rendered":"Taxpayers have already absorbed $32 billion in student loans under Biden administration"},"content":{"rendered":"

Federal government under President Biden has paid out $32 billion to absorb student loans through \u2018targeted initiatives,\u2019 according to <\/strong><\/em>Forbes<\/strong><\/p>\n

President Biden has already discharged $32 billion in loans for several categories of student borrowers since the beginning of his term, in advance of his promised August announcement<\/a> regarding mass cancelation.<\/p>\n

U.S. Secretary of Education Miguel Cardona<\/a> said Sunday on NBC\u2019<\/a>s \u201cMeet the Press\u201d that Americans can expect an update in “next week or so\u201d as to whether Biden will extend the federal student loan payment moratorium<\/a> set to expire August 31 or \u201cforgive\u201d more debt.<\/p>\n

A program begun under President Donald Trump and continued under the Biden administration has already offered debt relief to several categories of borrowers, characterized by their job, disability, or having attended a college with proven deceptive or improper practices, according to an August 18 article in Forbes<\/em><\/a>. The Department of Education has spent roughly $32 billion on these \u201ctargeted\u201d student loans since the beginning of the Biden administration, Forbes reported .<\/p>\n

The total expenditure has already been \u201cmore than any previous president, but less than 2% of the $1.75 trillion in student loan debt outstanding,\u201d higher education finance expert Mark Kantrowitz<\/a> told The College Fix<\/em> in an August 18 email. Kantrowitz is the author of five books about paying for college, according to his website<\/a>.<\/p>\n

The Department of Education canceled $13 billion in loans for students \u201charmed by their schools through misrepresentations or school closures,\u2019 Forbes<\/em> reported; another $9.6 billion went to the 175,000 borrowers who committed to working at least 10 years at nonprofit or public organizations, and another $9 billion was disbursed to students whose permanent disabilities affect their ability to pay.<\/p>\n

Most recently, the department spent $3.9 billion canceling loans for the more than 200,000 students who attended the now defunct for-profit ITT Technical Institute, NBC<\/a> reported August 16.<\/p>\n

ITT \u201cengaged in widespread and pervasive misrepresentations related to the ability of students to get a job or transfer credits,\u201d according to an August 16 news release from the Department of Education.<\/p>\n

\u201cITT Tech\u2019s leaders intentionally misled students \u2026 to profit off federal student loan programs,\u201d Secretary of Education Miguel Cardona tweeted August 17. \u201cIt is time for student borrowers to stop shouldering the burden from ITT\u2019s year of lies and false promise.\u201d<\/p>\n

\n

ITT Tech\u2019s leaders intentionally misled students about the quality of their programs to profit off federal student loan programs. It is time for student borrowers to stop shouldering the burden from ITT\u2019s years of lies and false promises. pic.twitter.com\/8rjzNCJEiG<\/a><\/p>\n

— Secretary Miguel Cardona (@SecCardona) August 17, 2022<\/a><\/p><\/blockquote>\n