This week, the Byden administration signed a deal to cancel a $ 6 billion federal student loan debt to about 200,000 borrowers attending predominantly for-profit colleges.

The agreement covers more than 150 schools, including Debris University, the University of Phoenix, and the recently abolished ITT Institute of Technology.

Another 68,000 borrowers who did not attend a qualified university will be able to quickly track their relief claims under this agreement.

Activists are holding up a sign when attending a student loan forgiveness rally on April 27, 2022 in Washington, DC, on 17th Avenue near Pennsylvania Avenue and the White House. (Anna Money Maker / Getty Images / Getty Images)

The proceedings were originally filed in 2019, alleging that the Ministry of Education deliberately stagnated the borrower’s defense process. This is a way to apply for relief if people believe that the university they attend has made false advertisements.

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Eileen Connor, director of the plaintiff’s predatory student lending project, celebrated a “momentary settlement” on Thursday.

“It not only helps secure billions of dollars in debt forgiveness for fraudulent students, but also illustrates a fair, just and efficient borrower defense process for future borrowers.” She said in a statement.

A hearing is scheduled for July 28 for the judge to give final approval of the transaction.

President Biden

President Biden will speak in the East Room of the White House in Washington on Tuesday, April 5, 2022. (AP Photo / Carolyn Custer / AP News Room)

The deal will take place a few weeks after the Biden administration has announced that it will cancel the debt of approximately $ 5.8 billion for those attending Corinthian schools.

Since the first day of the Biden administration, the Democratic Party’s progressive wings have urged the president to cancel the $ 50,000 student loan debt for all borrowers.

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Biden has resisted these calls so far, but the Washington Post reported last month that the White House is considering canceling up to $ 10,000 in student debt for every less than $ 150,000 a year. did.

The Associated Press contributed to this report.

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