Student Loan Forgiveness Rules Change Again


By Attorney Briane Pagel

For five years now, the federal government has offered a program that attempts to erase student loans for those students who were defrauded by their schools. But for several years, the Department of Education under the previous administration gave minimal (if any) relief to borrowers. Under the new administration, the Department of Education has reversed those policies and now offers not only forgiveness of remaining student debt but in some cases also a refund of money paid on the loans already.

While the Biden administration promises the new rules will be easier to comply with, the Betsy Devos-era rules are still in place, providing a challenge to students who have been taken advantage of by for-profit or other fraudulent schools, and the application process can be complex and lengthy. Students qualify for forgiveness of their loans if they can prove that the educational institution engaged in misconduct, but may also have to show that they lack another remedy, or that they have been financially hurt by the school’s fraud – and the Department of Education does not always consider merely having to repay loans as “financially hurt.”  

Lawton & Cates offers student debtors assistance in applying for forgiveness, and does so in a way that makes such help affordable for students already burdened by debt. In addition, our consumer protection lawyers have been at the forefront of representing students in lawsuits which have required student loan collectors to comply with Wisconsin state law, and to pay damages to debtors when they violated those laws by collecting. If you want to talk over your student loan options with a Lawton & Cates lawyer, call or email today.