Biden Admin Pays Off $1.5 Billion in Loans From For-Profit College That Promised Students Jobs

By Published on August 30, 2022

The Department of Education (DOE) is relieving $1.5 billion in student loans for students previously enrolled in any Westwood College location, according to an Aug. 30 press release.

The DOE found that Westwood College lied about the value of its credentials, misleading students searching for a job after graduation, according to the press release. A total of 79,000 borrowers will be forgiven who enrolled in the college until 2016, when the school closed.

“Westwood operated on a culture of false promises, lies and manipulation in order to profit off student debt that burdened borrowers long after Westwood closed,” Under Secretary James Kvaal said in a press release. “The Biden-Harris Administration will continue ramping up oversight and accountability to protect students and taxpayers from abuse and ensure that executives who commit such harm never work at institutions that receive federal financial aid again.”

In its investigation, the DOE concluded that the college falsely told students that upon graduation they would have a job within six months and inflated salary statistics of graduates, the press release stated. The college also promised that if students were not employed within six months of graduation, the school would pay students’ bills.

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The DOE conducted interviews with former students and faculty and analyzed admission advertising materials and the colleges’ communications and trainings as a part of its investigation, the press release said. The college’s criminal justice program promised jobs in Illinois law enforcement and advertised so on TV, but the school never met state employment requirements.

Borrowers of ITT Technical Institute were relieved of $3.9 billion in remaining student loans on Aug. 16 by the DOE. The Biden administration announced Aug. 24 that borrowers making under $125,000 per year would be relieved of up to $10,000 in student loans.

The DOE did not immediately respond to the Daily Caller News Foundation’s request for comment.

 

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