July 25 Tuesday, In a significant move, President Joe Biden declared the forgiveness of $130 million in student debt for 7,400 borrowers who were former students of CollegeAmerica in Colorado. The for-profit college had ceased operations in 2020 after facing severe criticism for deceiving students about their career prospects and loans.
Under the recent announcement by the U.S. Department of Education, the debt relief will be automatically extended to students who had been enrolled in CollegeAmerica’s Colorado-based locations between January 1, 2006, and July 1, 2020. The college had stopped admitting new students in 2019 and eventually closed its doors in September 2020.
Marketed as an institution to help working adults obtain degrees, CollegeAmerica came under fire from education experts and state officials. The Accrediting Commission of Career Schools and Colleges (ACCSC) placed the college on probation in 2018, citing concerns that its programs were not designed to ensure student success.
The Education Department’s investigation revealed that CollegeAmerica’s parent company, the Center for Excellence in Higher Education, had misrepresented crucial information, including graduate salaries, employment rates, and private loan terms. The evidence for these findings was provided by Colorado Attorney General Phil Weiser, who had accused the college of enticing students with false promises of high-paying jobs, leading to expensive yet inferior programs.
President Biden expressed his concerns about the situation, stating, “CollegeAmerica borrowers were lied to, ripped off, and saddled with mountains of debt.” The debt forgiveness aims to alleviate the financial burden borne by the affected students due to the college’s misleading practices
Supreme Court Rejected The Biden Student Loan Debt Forgiveness Plan
On Friday, the Supreme Court delivered a verdict on President Joe Biden’s proposal to forgive student loan debt for 26 million Americans, ultimately rejecting the program. This decision marks the end of an initiative aimed at alleviating financial burdens for countless families.
The Court’s ruling was grounded in the belief that the Biden administration had overstepped its authority by attempting to forgive $400 billion in student loans accrued during the pandemic. This case garnered substantial attention, carrying significant implications for the balance of power in Washington and the financial well-being of households across the nation.
In response to this development, President Joe Biden adjusted his White House schedule and addressed the Supreme Court’s decision to overturn his administration’s student loan relief program at 3:30 p.m. ET.
Biden expressed his disapproval of the decision
In an earlier statement on Friday, President Biden expressed his disapproval of the decision, stating that the “fight is not over.” During his address to the nation later in the day, he mentioned that he would have “more to announce.”
President Biden expressed his disagreement with the Supreme Court’s decision, stating, “I believe that the Court’s decision to strike down our student debt relief plan is wrong.” However, he emphasized his unwavering commitment to finding alternative means to provide relief to hard-working middle-class families. The Biden administration will persist in its efforts to fulfill the promise of accessible higher education for every American.
In response to the Supreme Court’s decisions on limiting LGBTQ protections and rejecting President Joe Biden’s student loan forgiveness program, Republican candidates for the 2024 presidential election have issued statements.
Former Vice President Mike Pence welcomed both decisions. He characterized the student loan forgiveness program as a “bailout” that subsidized the education of elites at the expense of hardworking Americans and deemed it an unconstitutional use of executive authority.
“I am pleased that the Court struck down the Radical Left’s effort to use the money of taxpayers who played by the rules and repaid their debts in order to cancel the debt of bankers and lawyers in New York, San Francisco, and Washington, D.C.,” Pence added.
Pence also emphasized the importance of religious freedom in response to the Supreme Court’s decision on LGBTQ protections, noting his role in the appointment of three of the justices who contributed to this decision.
One thought on “Biden Announces $130 Million Student Debt Forgiveness for CollegeAmerica Students”