The Education Department said Thursday that it will cancel the loans of 28,000 student borrowers who attended a now-defunct for-profit chain of cosmetology schools. This is the latest move by the Biden administration to address the issue of student-debt forgiveness. Borrowers who attended the Marinello Schools of Beauty between 2009 and its closure in 2016 are eligible for relief, which amounts to $238 million. The federal government previously determined that Marinello had “engaged in pervasive and widespread misconduct that negatively affected all borrowers” enrolled during that period — among other things, that it had “failed to train students in key elements of a cosmetology program, such as how to cut hair.” Some Marinello loans have already been forgiven, but this action is a broad group discharge for anyone who went to the school during that period, even those who haven’t applied for relief.
Struggling with debt? Call our office at 816-524-4949 or click here to schedule a free consultation to discuss your options.