As many as one in five federal student loan borrowers are in default, and just 2 percent of borrowers who apply for loan discharges under the Public Service Loan Forgiveness program are granted a discharge.
A coalition including Attorney General Mark Herring is citing these statistics as they urge the adoption of resolutions in Congress that call for the cancellation of up to $50,000 in federal student debt owed by each and every federal student loan borrower nationwide.
In their letter to Congress, Herring and his colleagues stress the immediate relief needed for borrowers struggling with unmanageable student loan debt.
The resolutions – Senate Resolution 46 and House Resolution 100 – call on President Biden to exercise his authority to cancel up to $50,000 in federal student loan debt per borrower.
“Hundreds of thousands of Virginians are suffering under the crippling weight of federal student loan debt, which in turn affects almost every other aspect of their lives,” Herring said. “Black and Latinx communities in Virginia are particularly affected by the burden of student loan debt and giving them this relief could substantially increase their household income. Too often, a Virginian is held back in life because of student loan debt and it’s time they get the help they deserve.”
The letter specifically highlights misconduct by for-profit schools, and how the industry’s predatory practices have disproportionately harmed people of color.
Herring has taken actions against for-profit colleges for misleading students. In 2015, for-profit education company Education Management Corporation announced it would significantly reform its recruiting and enrollment practices and forgive more than $2.29 million in loans for approximately 2,000 former students in Virginia through an agreement with the attorney general and a group of state attorneys general.
Nationwide, the agreement required the for-profit college company to forgive $102.8 million in outstanding loan debt held by more than 80,000 former students.
In 2016, Herring announced that more than 5,000 Virginia students formerly enrolled in schools operated by Corinthian Colleges, Inc. may be eligible for loan forgiveness. This came after the U.S Department of Education found that Corinthian College and its subsidiaries published misleading job placement rates for many programs between 2010 and 2014.
Following this announcement, Herring urged Secretary DeVos and the Department of Education to follow through on their commitment to cancel student debt for students in Virginia and around the country who were victimized by Corinthian Colleges’ practices.
Herring announced in 2019 that he and 48 other attorneys general reached a settlement with for-profit education company Career Education Corporation. The terms of the settlement required CEC to reform its recruiting and enrollment practices and forgo collecting about $493.7 million in debts owed by 179,529 students nationally.
In Virginia, 3,094 students will receive relief totaling $8,022,178.
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Chris Graham
