Chairman Scott Applauds Biden Administration for “Lifechanging” Announcement on Borrower Defense Claims

WASHINGTON – Chairman Robert C. “Bobby” Scott (VA-03) released the following statement after the Department of Education announced it would provide full debt relief to roughly 72,000 borrowers that were defrauded by Corinthian Colleges and ITT Technical Institute. 

“Today’s announcement means that tens of thousands of defrauded student loan borrowers will finally be granted the debt relief that they are legally entitled to receive. It has been more than four years since the Department of Education first concluded that these students had been cheated by their institutions and were deserving of full debt relief. Unfortunately, instead of simply processing loan forgiveness claims, the previous administration refused to accept the findings of its own staff and suspended action on behalf of these defrauded borrowers. 

“After several congressional hearings, public pleas, and a federal court order, the previous administration implemented a nonsensical formula that provided only a fraction of the relief that borrowers deserved.  In June 2020, the Committee published a comprehensive oversight report highlighting the previous administration’s mistreatment of defrauded borrowers. The report’s top recommendation was for the Education Department to provide full relief to defrauded borrowers who attended Corinthian Colleges and ITT Tech. 

“For more than four years, defrauded borrowers and their families have lived under a cloud of education debt that they should not have to repay. I applaud the Biden Administration for doing the right thing by making these borrowers whole, and I can only imagine the mixture of joy and relief they are feeling today. This announcement is lifechanging for tens of thousands of people across the country.” 


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