US Education Department Cancels $150 Million Student Loans

US Education Department Cancels $150 Million Student Loans

US Education Department Cancels $150 Million Student LoansOn Thursday, the US Department of Education has declared to cancel about $150 million loans of students who have applied in for-profit colleges that have been closed down lately. There were approximately 15,000 students who went to colleges that are now no more in function. In fact, those colleges have been shut down between November 1, 2013 and December 4, 2018.

The Department has said that those who attended campuses that have been recently closed are still in the favor to apply for a cancellation of their loans. Education Secretary Betsy DeVos has expressed deep regrets considering the terrible situation that the students have been forced to face. She has made serious attempts at rolling back the rules that are targeted to protect the students, the ones to paid hefty amounts for attending for-profit colleges that have been out of function.

DeVos, in the midst of this chaos was attempting “to rewrite the underlying rule” as claimed by the office of Sen. Patty Murray, D-Wash who is a ranked member in the Committee of Health, Labor, Education and Pensions. She has been said to spark off the cancellations for loan.

Information has come out of Murray’s office that over 100,000 students have several serious claims against the institutions that they attended. Murray has deemed this entire situation as disappointing enough. Further, Murray said that it took a court order for Secretary DeVos to begin ordering cancellation of loans for the students who have faced trouble in this crisis.

This crucial step of loan cancellation should have start off much before, Murray felt. It is indeed a first positive step that Department of Education, US has taken to allow the students, especially those from Corinthian College and ITT Tech to cancel their loans immediately and be relieved of the burden. However, there is more to be done for the ill-fated students.