Biden Administration Cancels $130 Million of Debt for ‘Ripped Off’ Students

The decision will benefit 7,400 borrowers who attended the now-defunct CollegeAmerica.

Pencil erasing the words student loans
(Image credit: Getty Images)

The Biden administration is forgiving $130 million in student debt for 7,400 borrowers who attended the now-defunct CollegeAmerica, a Colorado-based private school whose parent company allegedly misrepresented graduates’ salary, employment rates and other information.

The debt cancellation specifically applies to borrowers who attended CollegeAmerica’s Colorado-based locations between January 1, 2006 and July 1, 2020. The school is permanently closed but the Center for Excellence in Higher Education (CEHE), its parent company, remains in operation, according to its website.

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Joey Solitro

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.