USDOE announced $1.5B in debt relief for borrowers who enrolled in the now-closed Westwood College
Delegate Gregorio Kilili C. Sablan (D-MP) said Saturday that the White House announced that teachers, nurses, members of the military, and others in public service professions have until Oct. 31, 2022, to apply for total student debt forgiveness.
Sablan in his e-kilili newsletter also disclosed that on Tuesday, the U.S. Department of Education announced $1.5 billion in debt relief for 79,000 borrowers who enrolled in any location of the now-closed Westwood College between 2002 and 2015, including its online program.
He said under the Public Service Loan Forgiveness Program, qualified applicants can have their school loans canceled after 10 years or more of working for the public good.
Last week, Sablan disclosed President Joseph Biden Jr.’s announcement that some borrowers may be eligible to receive up to $20,000 in student loans forgiven automatically because the U.S. Department of Education has their income data.
“If you do not know if the department has your income data, the Biden Administration will launch an application in the coming weeks,” he said.
The delegate said those with federal student loans will have their freeze in payment extended through Dec. 31, 2022 with up to $20,000 forgiven for eligible borrowers.
President Biden, Vice President Kamala Harris, and the U.S. Department of Education have announced a three-part plan, including the loan forgiveness of up to $20,000, to help working and middle-class federal student loan borrowers transition back to regular payment as pandemic-related support expires.
The types of student loans covered are federal direct loans including a direct consolidation loan, and any of the following loans:
-Federal Family Education Loans (FFEL)
-Federal Perkins Loans
-Federally Insured Student Loans (FISL)
-National Defense Student Loans (NDSL)
-Supplemental Loans for Students (SLS)
-Health Education Assistance Loan (HEAL)Covered is also a combination of any such listed loans.
With respect to Westwood College, Sablan said the full discharge of former students’ federal loans comes regardless of whether borrowers have applied for a borrower defense discharge, and will require no additional actions by the borrowers.
According to the Department’s investigation, the school engaged in widespread misrepresentation about the value of its credentials for attendees’ and graduates’ employment prospects.