October 5, 2022

Joe Biden cancels $3.9 billion in student loans

Democrats love to give away money they’ve confiscated to taxpayers. President Joe Biden’s administration has found his own unique way to do just that.

The Department of Education announced Tuesday that it would cancel some $3.9 billion in student loans to borrowers who attended the since-closed ITT Technical Institute, the Washington Examiner reported. This brings the Biden administration’s total loan forgiveness to $32 billion for an estimated 6 million people.

“It is time for student borrowers to stop shouldering the burden from ITT’s years of lies and false promises,” Education Secretary Miguel Cardona said of the move. “The evidence shows that for years, ITT’s leaders intentionally misled students about the quality of their programs in order to profit off federal student loan programs, with no regard for the hardship this would cause.”

The policy affects around 200,000 alumni who owe after attending the institution. The for-profit school closed its doors in 2016, and forgiveness applies to loans originating between Jan. 1, 2005, and Sept. 2016.

The government barred further loans to ITT in 2016 after allegations that it oversold students’ ability to get jobs after graduating. “The Biden-Harris Administration will continue to stand up for borrowers who’ve been cheated by their colleges while working to strengthen oversight and enforcement to protect today’s students from similar deception and abuse,” Cardona stated.

DeVry University is similarly facing a $24 million liability because it allegedly “misled” graduates about job guarantees between 2008 and 2015. The Education Department put DeVry on notice as of Monday.

Democrats have toyed with the idea of loan forgiveness and recently extended a moratorium on student loan repayments until Aug. 31. So far, Biden has yet to announce whether full loan forgiveness is coming, but a decision is expected by the end of August.

It’s not the government’s job to retroactively refund students who were ripped off by an institution. However, Democrats are desperate, and student loan forgiveness is one last Hail Mary before the political bloodbath this November.

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