defrauded students could see $ 1 billion in student loan debt canceled | Personal finance



The announcement means that 72,000 borrowers who received only a partial forgiveness under the previous administration will now get a full discount on qualifying loans, as well as reimbursement of any money they paid for the loans.

How to Apply for a Pardon Under the Borrower Defense Rule

If you believe you have been misled by your school and have been encouraged to enroll and stay enrolled under false pretenses, you can request the postponement of the borrower’s defense at any time on the dedicated government page. If you attended one of the Corinthian college campuses, use the application.

You will usually need to show that your school has skewed its college rankings, post-graduation employment rates, likelihood of its credits being transferred to other schools, or other data. Preview complete application for examples of activities that may demonstrate fraud. (Note that the online version of the app does not yet consider the removal of income data as a determinant of forgiveness.)

It is possible to ask abstention, a pause on your loan payments, while the ministry reviews your request. Federal student loans are all mandatory abstention period until September 30, 2021 due to the Covid-19 pandemic. But if the forbearance ends in October and your borrower defense claim is still pending, your payments may remain on hold.



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