Student loans have become a massive problem for millions of young Americans. After taking out thousands of dollars to go to school, lots of young people are now finding that their current jobs simply don't pay enough to cover their debts.
However, some people are rejoicing today after the U.S. Department of Education just announced they are going to be forgiving $150 million in federal student loans! It is a huge move that has lots of people very excited.
"Nearly 15,000 former students whose schools shut down prior to graduation between Nov. 1, 2013 and Dec. 4 will now have their loans cancelled, the Education Department announcement said. Borrowers will find out about the loan forgiveness over email Friday, CNBC reported," according to The Daily Caller.
The catch is that it only is applying to certain students who are in a particularly specific situation. Applicable loans are for students who went to a for-profit college that has now shut down. The move comes from the Borrower Defense Program.
The rule, initiated by former President Barack Obama’s administration, is called the Borrower Defense to Repayment. The rule helps students defrauded by for-profit colleges to have their loans cancelled after three years, CNN reported.
About half of the loans being forgiven are coming from Corinthian Colleges, Inc., which closed in 2015. About $80 million will be erased for students who attended that school.
Students who have had their colleges shut down are able to apply for the program. However, students who simply went to a normal state school may not be receiving any of this forgiveness help, unfortunately.
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