Washington (December 4, 2024) – Senator Edward J. Markey (D-Mass.), a member of the Senate Health, Education, Labor and Pensions Committee, and Senator Dick Durbin (D-Ill.), and Congresswoman Maxine Waters (CA-43), today called on the Department of Education to discharge student loan debt for hundreds of thousands of students who were defrauded by predatory schools. During the first Trump administration, defrauded borrowers’ applications for debt relief were left to languish for years, and if reviewed, were often denied. In their letter today, the lawmakers called for the Department to use its authority to immediately discharge debt.
Since 2022, the Department has announced group discharges for more than 1.2 million individuals who attended schools that engaged in documented fraud and misconduct, including ITT Technical Institute and Corinthian Colleges. Yet, hundreds of thousands of borrowers are still awaiting their discharges. Many additional borrowers are eligible for borrower defense group discharge because they attended schools for which the Department possesses evidence of fraud and misconduct; 400,000 borrowers have submitted individual applications for borrower defense discharges that the Department has yet to process.
“The Department of Education must deliver justice to borrowers who were scammed by for-profit colleges and saddled with unpayable debts before the Trump Administration slams the door shut on borrowers in January,” said Senator Markey. “Borrowers who have struggled with debt for years or even decades cannot afford to wait any longer.”
“Time and time again, for-profit schools make false promises to students, claiming that they can push them ahead in life. Instead, these schools siphon off federal student aid dollars while leaving students in crushing debt and with a near useless degree,” said Senator Durbin. “The incoming administration has a troubling track record of favoring for-profit colleges over scammed students. It’s critical that the Biden administration swiftly approves any and all borrower defense applications and discharge the debt of those who attended a fraudulent for-profit school.”
“I have fought for many years to prevent predatory, for-profit colleges from defrauding students and to hold these institutions accountable when they do so,” said Congresswoman Waters. “It is urgent that the Department of Education immediately process debt relief for the hundreds of thousands of student borrowers who were defrauded by these predatory institutions.”
“Swift action to clear predatory debt is imperative to save defrauded student borrowers and their families from financial despair. Thank you to the Congressional leaders who understand the consequences for borrowers and their families if discharges are not implemented immediately. There are hundreds of thousands of individuals' financial well-being at stake, there is no time to waste in taking action,” said Ashley Harrington, Senior Director of Policy and Advocacy, Project on Predatory Student Lending.
In the letter to the Department of Education, the lawmakers wrote, “The Biden administration has demonstrated a commitment to supporting student borrowers and mitigating the devastating impact of student loan debt, including issuing targeted debt relief to hundreds of thousands of borrowers defrauded by predatory higher education institutions.”
The lawmakers continued, “We urge the Department of Education to follow through on its commitment by immediately processing debt discharges for borrowers already approved for relief; issuing additional discharges for students who attended institutions with documented histories of predatory practices; and processing any outstanding borrower defense applications.”
The letter is co-signed in the Senate by Senators Tina Smith (D-Minn.), Richard Blumenthal (D-Conn.), Tim Kaine (D-Va.), Kirsten Gillibrand (D-N.Y.), Jeffrey A. Merkley (D-Ore.), Bernie Sanders (I-Vt.), Brian Schatz (D-Hawaii), Chris Van Hollen (D-Md.), Peter Welch (D-Vt.), Ron Wyden (D-Ore.), Raphael Warnock (D-Ga.), Elizabeth Warren (D-Mass.), Laphonza Butler (D-Calif.), Christopher S. Murphy (D-Conn.), Ben Ray Lujan (D-N.M.).
The letter is co-signed in the House of Representatives by Representatives Maxine Waters (CA-43), André Carson (IN-07), Danny K. Davis (IL-07), Robin L. Kelly (Il-02), Jan Schakowsky (IL-09), Eric Swalwell (D-CA), Joe Courtney (CT-02), Adriano Espaillat (NY-13), Pramila Jayapal (WA-07), Julia Brownley (CA-26), Erica Lee Carter (TX-18), Gwen S. Moore (WI-04), Barbara Lee (CA-12), Joaquin Castro (TX-20), Mary Gay Scanlon (PA-05), Rashida Tlaib (MI-12), Bennie G. Thompson (MS-02), Alma S. Adams Ph.D. (NC-12), Sheila Cherfilus-McCormick (FL-20), Rosa L. DeLauro (CT-03), Ritchie Torres (NY-15), Cori Bush (MO-01), Debbie Dingell (MI-06), Greg Casar (TX-35), Mark Takano (CA-39), Dan Goldman (NY-10), Mark DeSaulnier (CA-10), Ayanna Pressley (MA-07), Delia C. Ramirez (IL-03), Alexandria Ocasio-Cortez (NY-14), Jerrold Nadler (NY-12), Nydia M. Velázquez (NY-07), Salud Carbajal (CA-24), John B. Larson (CT-01), Lucy McBath (GA-07), Jesús G. “Chuy” García (IL-04), Summer L. Lee (PA-12), Yvette D. Clarke (NY-09), Al Green (TX-09), Lauren Underwood (IL-14), Dwight Evans (PA-03), Frederica S. Wilson (FL-17), Hank Johnson (GA-04)., Suzanne Bonamici (OR-01), Jamaal Bowman (NY-14), LaMonica McIver (NJ-10), Raúl M. Grijalva (AZ-07), Adam Smith (WA-09), Sylvia R. Garcia (TX-29), Nanette Diaz Barragán (CA-44), Joyce Beatty (OH-03), Shri Thanedar (MI-13), Jennifer L. McClellan (VA-04), Sean Casten (IL-06), Grace Meng (NY-06), Jimmy Gomez (CA-34), Nikema Williams (GA-05), Robert Garcia (CA-42).
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