Education Prevails

The Department of Education has canceled nearly $72 million in student loan debt for borrowers who attended for-profit colleges owned by Education Corporation of America (ECA). This decision comes after the department determined ECA, which closed abruptly in 2019, engaged in widespread misconduct. The department found that ECA misled students about their job prospects and the transferability of their credits. The colleges, including Virginia College, Brightwood College, and Ecotech Institute, allegedly made false promises about career placement rates and the value of their programs. Evidence suggests ECA knew its claims were inflated and misleading, yet continued to recruit students based on this false information. The cancellation of debt is being made under the borrower defense to repayment rule, which allows students to have their federal student loans discharged if their college engaged in fraudulent or deceptive practices. This latest action builds on previous borrower defense discharges granted to former ECA students. The Biden administration has made addressing student loan debt and holding predatory institutions accountable a priority. This cancellation is part of a broader effort to provide relief to borrowers who were defrauded by for-profit colleges and to ensure these schools are held responsible for their actions. The department is actively reviewing borrower defense claims and working to streamline the process for borrowers seeking relief. find the original article here: https://www.yahoo.com/news/another-slapdown-trump-education-dept-184015426.html