You Are Now Eligible for Full Student Loan Forgiveness If You Are Cheated

The Department of Education announced that they would forgive about $ 1 billion in student loan debt for borrowers who were tricked or defrauded. The move relaxes the Trump-era loan restrictions for this type of claim and includes a full forgiveness of previously approved claims that received less than the full repayment of the loan.

How to qualify for debt relief

Through the Pre-Maturity Borrower Protection program, you can apply for a student loan forgiveness if your school has either defrauded your tuition fees or misled you about your education (usually a commercial school problem). These distortions include false claims about the school’s selectivity in enrollment, its ranking compared to other schools, false promises of employment, earnings, or the ability to transfer credit to and from other schools.

The key part here is proof that you have been misled – you are not eligible for cancellation due to poor quality course materials or teaching staff, questionable grades, or poor quality equipment.

What changed?

The Biden administration is overturning Trump’s policy of providing only partial aid to students and will help an estimated 72,000 borrowers get $ 1 billion in loan cancellations. The Ministry of Education says that a total of 343,331 applications for assistance have been received as of March, but only 61,511 have been approved. Education Minister Miguel Cardona said in a statement:

Borrowers deserve a simplified and fair path to assistance if they are harmed by their institution’s misconduct. A careful analysis of these claims and the associated evidence has shown that these borrowers have been harmed and we will give them the opportunity to start over with their debt.

Full relief according to the rules will include:

  • 100 percent repayment of federal student loans related to borrowers.
  • Reimbursement of any amounts paid on loans, if necessary in accordance with the rules.
  • Requests to credit bureaus to remove any associated negative credit reporting.
  • Reinstatement of Eligibility for Federal Student Aid, if applicable.

The department described Thursday’s action as a “first step” and said it would consider rewriting the rules in the future.

How to get

According to Yahoo! Those with borrower protection claims can look forward to receiving notice within the next few weeks followed by forgiveness of your loans – whether it is the remaining partial amount of a previous claim or the entire existing claim that was recently filed.

To file a new claim, click here . If you are unsure if you qualify, please read the instructions on the borrower protection application form as they provide helpful guidance in determining if you are eligible for a loan forgiveness.

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