Biden Administration Erases $130M Student Debt for CollegeAmerica Borrowers

The Biden administration has announced the cancellation of $130 million in federal debt for 7,400 students who attended CollegeAmerica, a Colorado college that the government says deceived students about its success. This move is part of the administration's ongoing efforts to provide relief to borrowers who were misled or short-changed by for-profit colleges. The Department of Education has already forgiven $14.7 billion in debt for nearly 1.1 million borrowers who attended institutions such as Corinthian Colleges and ITT Technical Institute. CollegeAmerica closed down in 2021 after a successful lawsuit brought by the state. The debt relief will be automatic and covers students who attended between 2006 and July 1, 2020.