SOFI - $37M In Student Debt Forgiven: Biden Administration Rectifies University Of Phoenix Fraud | Benzinga
The Biden administration on Wednesday said that it has forgiven $37 million in student debt for borrowers defrauded by the University of Phoenix, following a multi-year investigation by the Federal Trade Commission (FTC) that led to a $191 million settlement in 2019.
Internal emails, advertisement materials, and recorded phone calls acquired by the FTC showed the university falsely claimed corporate relationships.
Notifications of relief for impacted borrowers are set for early October.
To date, over $117 billion in student debt has been canceled by the Biden administration benefiting 3.4 million borrowers through adjustments to repayment plans and the Public Service Loan Forgiveness program, according to a Wednesday CNBC report.
President Joe Biden‘s broader debt forgiveness plan, aimed to erase up to $20,000 in student debt for Americans earning less than $125,000 annually, was blocked by the Supreme Court in June.
That forgiveness plan, intended to impact millions, remains in legal and regulatory processes. It targets specific borrower ...