Biden cancels $130 million in loans for students at closed Colorado college

The latest debt cancellation, which comes amid a larger push by the administration to find ways to cancel student loans, applies only to borrowers who attended the Colorado locations of CollegeAmerica, a network of institutions owned by the Center for Excellence in Higher Education, a for-profit company."From Day One of my Administration, I promised to rebuild the middle class, and to fight for hardworking American families," President Joe Biden said in a statement.

The cancellation is the latest effort by the administration to cancel loans for a large swath of borrowers. The Department of Education previously settled a lawsuit brought by borrowers who claimed to have been defrauded by for-profit colleges by canceling all loans held by students that attended some 150 schools.

Last year, the administration unveiled plans to forgive up to $20,000 in student loans for borrowers making less than $125,000 per year, the broadest student loan cancellation plan the administration has devised to date. The plan was challenged in court, and the U.S. Supreme Court ultimately struck it down last month.

But despite the setback, the department has continued to seek out ways to enact student loan forgiveness. Earlier this month, the administration announced it would be canceling more than $30 billion in student loans for 800,000 borrowers under the existing income-driven repayment program. The administration has also announced plans to pursue rulemaking under the Higher Education Act to enact a large-scale student loan cancellation.

“I applaud the Department of Education for providing much-deserved relief to the many Coloradans who were mistreated by CollegeAmerica,” Weiser said in a statement. “CollegeAmerica knowingly took advantage of students by luring them into high-priced, low-quality programs with promises of high-earning potential and job placement that it knew were not attainable.

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