A new Biden administration policy will allow full federal student loan relief to borrowers defrauded by their colleges.
According to a press release from the office of US Representative Joe Courtney, the policy departs from practice under the administration of former President Donald Trump, “who adopted a formula whereby defrauded students could only receive one partial relief. Instead, the education department under Secretary Miguel Cardona will assume that defrauded borrowers are entitled to 100 percent relief unless proven otherwise, ”the press release said.
Residents of Southeast Connecticut could be affected by the change. The now-defunct Ridley-Lowell for-profit school in New London closed abruptly in 2018. It offered certifications in dental and medical, beauty and electrical fields on New London campuses. and Danbury. A representative for the school at the time said it had closed due to “serious financial and operational issues.”
The closure of Ridley-Lowell School took a financial toll on the students, Courtney said in the press release.
President Joe “Biden’s Order Creates a Presumption of One Hundred Percent Discharge for Student Victims of ‘Scam’ Schools That Tricked Them into Taking Loans for Programs That Were Closed Without Warning , or have blatantly distorted the value of the proposed program, ”Courtney said in the press release. “In Connecticut, for-profit schools like ITT Tech and Ridley-Lowell in New London suddenly closed in 2016 and 2018, respectively, leaving students without degrees or certifications, and with thousands of dollars in student debt. In addition to the recent extension by the Biden administration of the “pause” in student loan payments until January 2022, this is another step in relieving student loan borrowers. “
So far, during Biden’s tenure, more than $ 1.5 billion in student debt for more than 90,000 borrowers defrauded by for-profit schools has been written off.
In 2018, Courtney announced that the US Department of Education would help students attending Ridley-Lowell. The ministry’s website provided information on topics such as obtaining official transcripts, options for paying off student loans, and contacting student loan managers.
Courtney, a member of the House Education and Workforce Committee, wrote to then Education Secretary Betsy DeVos asking the department to take action following the Ridley-Lowell closure.
The school, which had a location at the corner of Bank and Howard streets in New London, also operated in Danbury and New York and Rhode Island. About 150 students were enrolled at the Connecticut sites.
“Many Ridley-Lowell students have used federal loans and scholarships to pay for their tuition and it is imperative that we provide them with the resources they need to make good choices about what to do. then, “Courtney said in a statement at the time. “I am happy that the (education) department is moving quickly to exercise its statutory power to protect both taxpayers and students who trust this school’s promise of a certificate that would provide gainful employment.”