Saying more than 7,000 former students of a defunct for-profit college in Colorado will get $130 million in student debt forgiven by the federal government, President Joe Biden announced Tuesday in another step to lessen the burden on students carrying excessive debt.
A Denver-based company, CollegeAmerica attempted to change its status at the Department of Education from a for-profit school in 2012 to a non-profit for the purposes of getting additional Title IV federal student aid funding; however, the company did not change its IRS status as a for-profit company. In the ensuing years, the schools, which operated in Colorado and Arizona, lost its accreditation and ended up shuttering all its locations in 2021.
“As long as I am president, we will never stop fighting to deliver relief to borrowers, hold bad actors accountable, and bring the promise of college to more Americans,” Biden said in a statement.