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Rule to Speed Student-Loan Forgiveness for Defrauded Borrowers to Take Effect in July
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The Biden administration will make it easier for students defrauded by for-profit schools to get federal student loan forgiveness under new rules set to go into effect on July 1, setting up a speedier path for debt relief for potentially hundreds of thousands of borrowers.
Students who have been misled by schools about job prospects or are victims of other types of fraudulent behavior and aggressive recruiting will be able to have their federal debt discharged in full by the Education Department. The new regulations, known as Borrower Defense to Repayment, complete a reversal of a Trump administration rule that slowed discharges and provided partial relief to borrowers whose claims were approved.
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