Are they going to at least take some preventative actions? Curbing for profit colleges? Cutting down on predatory market tactics? Screening people for unreasonable loans (i.e. 60,000/yr for art school)?
Or is the plan just to forgive the loans, throw the money on the govt. balance sheet and let the for profit college owners sail away on their yachts.
These loans are being forgiven for people who attended for profit schools being investigated for fraud, and in fact claiming you were a victim of fraud is a requirement to get the loan forgiven. It's a continuation of an Obama program that saw some for profit schools shut down.
If I recall correctly, these schools were not sufficiently held accountable for borrowers who couldn't repay loans. They only tracked students' ability to repay for something like two years. I think policies were adjusted so that such predatory lending for a poor education is no longer possible. It's probably a game of cat, mouse, businessmen and politics. I doubt anything was done 2016-2020 since that president once ran his own for-profit U, but I think some changes were made before that.
I'm not defending the current system, but the predatory tactics of a decade+ ago changed dramatically under Obama and there are other steps currently being taken to prevent overly aggressive marketing tactics. University of Phoenix, for example, completely changed their marketing habits (among others afraid of getting sued/losing accreditation).
Yes, this is a tiny tiny fraction of outstanding student loan debt, in this case nearly all likely issued under fraudulent pretenses. Since Biden has taken over, similar specific, targeted actions have been taken on small portions of this enormous space.
Or is the plan just to forgive the loans, throw the money on the govt. balance sheet and let the for profit college owners sail away on their yachts.