Education Department Rescinds Trump-Era Formula Limiting Relief to Defrauded Student Loan Borrowers

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THE EDUCATION Department announced plans Thursday to rescind the formula established by the Trump administration that provided only partial debt relief to student loan borrowers who were defrauded by their schools.

A new plan to grant full relief to all borrower defense claims approved to date, including for those who already received less than a full loan discharge, is expected to extend roughly $1 billion in additional debt relief to 72,000 borrowers.

“Borrowers deserve a simplified and fair path to relief when they have been harmed by their institution’s misconduct,” Education Secretary Miguel Cardona said. “A close review of these claims and the associated evidence showed these borrowers have been harmed and we will grant them a fresh start from their debt.”

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