$16 Million More In Loans Were Just Canceled — But Not By The Government

As President Biden and the Department of Education continue to work out bolstering other student loan forgiveness programs, another $16 million in loans were just canceled. However, unlike others done through governmental programs, this round of debt cancelations didn’t come from the Department of Education or Biden. Here’s what you need to know.

According to Business Insider, the Debt Collective—a debtor’s union pushing for the abolishment of all forms of debt—announced that its sister organization, the Rolling Jubilee Fund, wiped out student loans for over 7,000 students that previously attended Vista College. Vista was a for-profit school that was shut down and declared bankruptcy after it was included on a list from the Federal Trade Commission for reportedly making false claims to students.

In total, the Rolling Jubilee Fund was able to buy out and clear $16 million in private student loans. "We bought the private student loan listed above and canceled it," the group wrote in a letter it is sending to students, informing them of the private student-loan relief, Business Insider reports. "You no longer owe the balance of this debt. You do not need to pay us, nor should you pay anyone else for this debt — it is gone!"

Last month, the Debt Collective also bought and paid for $1.7 million in debt owed to Bennet College, through a collaboration with the historically Black college to provide relief to students. At the time, the group wiped out all unpaid tuition and other school-related expenses owed to the college. In doing so, the students were then able to have the material and transcripts needed if they wanted to continue pursuing further education.

There have been some gains in canceling student debt over the past few months — the latest was a settlement for 200,000 borrowers totaling about $6 billion. However, the administration has yet to announce a larger plan to cancel student debt.