Biden administration agrees to cancel student debt of 200,000 borrowers

The Biden administration has agreed to eliminate the federal student loan debts of approximately 200,000 borrowers who claimed their college defrauded them but who haven’t had a response from the Department of Education regarding their applications for years.

Under the proposed agreement, the Biden administration would forgive the debts of borrowers who have already filed a claim against one of 50 colleges and would wipe out over $6 billion of student loan debt if it is approved. The agreement was reached as part of a proposed class-action settlement filed in federal court Wednesday evening, according to Politico.