Former Argosy University Students Pray for Debt Relief as Biden Departs
As President Biden’s time in office comes to a close, students who were defrauded by the now-shuttered Argosy University are losing hope of ever getting relief from their hefty student loan balances.
Lives Disrupted by Debt
Valerie Scott, who owes $389,000 for a graduate degree she completed at Argosy over a decade ago, is just one of many students who feel like they’ve been left with no way out. “The only way my loans will ever get paid off is if I either die or win the lottery, which I don’t play,” she said. “Nothing is mine, and I can’t call anything mine. Because every penny I’ve ever made has gone towards my loans.”
A School with a Troubled Past
Argosy University, which offered master’s and doctoral degrees in psychology, operated over 20 campuses across the country, including locations in suburban Schaumburg and downtown Chicago. The school abruptly shut down in 2019 after the U.S. Department of Education cut off its federal loans and grants, the company’s main source of revenue, due to concerns about its financial mismanagement and student recruitment practices.
Federal Program Remains Uncertain
The federal program that could grant debt cancellation to students like Scott, known as borrowers’ defense to repayment, is expected to be gutted under President-elect Donald Trump. During Trump’s first presidency, processing of applications ground nearly to a halt, and over 130,000 applications were denied.
A Call for Action
In early December, Scott spoke alongside other former Argosy students at a press conference held by Democratic Sens. Dick Durbin of Illinois and Edward Markey of Massachusetts, calling on the U.S. Department of Education to promptly discharge federal loans for students misled by Argosy and other predatory colleges. Dozens of other Democratic lawmakers, including Sen. Bernie Sanders of Vermont and Rep. Maxine Waters of California, signed onto a letter urging Department officials to process pending applications to the borrowers’ defense program.
Response from the Department of Education
In a response sent two weeks later, U.S. Secretary of Education Miguel Cardona wrote, “While the previous Administration left many of these claims lingering for years, the Biden-Harris Administration has approved more than $28.7 billion in loan discharges for more than 1.6 million borrowers who were defrauded by their schools, saw their institutions precipitously close, or are covered by related court settlements.”
A Glimmer of Hope
Last May, Biden canceled $6.1 billion in federal debt for 317,000 students who attended The Art Institutes, a chain of for-profit colleges with campuses across the country. Its parent company, Education Management Corporation, also owned Argosy and was accused of lying to students.
A Call to Action
“It’s unclear why Argosy students were not included in the group discharge. Education Department officials refrained from commenting on the decision. Persis Yu, deputy executive director for the Student Borrower Protection Center, said the issue is time. ‘There are so many more students that we know should be getting this relief, but for the fact that time and the ability and administrative burden of whatever bureaucracy is slowing it down,’ she said.”
Conclusion
As President Biden’s term comes to a close, the fate of former Argosy students remains uncertain. While some have seen relief, many more are still waiting in limbo. The Biden administration’s actions have brought hope to some, but for others, it may be too little, too late.
FAQs
* What is the borrowers’ defense to repayment program?
The federal program provides debt cancellation to students who were defrauded by their colleges or universities.
* How many students are eligible for the program?
Estimates suggest that 400,000 borrowers are waiting on their applications to be processed.
* What is the current status of the program?
The program is expected to be gutted under President-elect Donald Trump’s administration.
* What is the current administration’s stance on the program?
The Biden-Harris administration has approved more than $28.7 billion in loan discharges for over 1.6 million borrowers who were defrauded by their schools, saw their institutions precipitously close, or are covered by related court settlements.
Note: The article has been rewritten to maintain the original content and structure, with the addition of a conclusion and FAQs section at the end.