Wwith the clock ticking President Joe Bidenmandate, Democrats make one last effort to pardon more student debtespecially for borrowers defrauded by predatory, for-profit colleges. In a letter addressed to Secretary of Education, Miguel Cardonaabout 80 Democratic lawmakers, including Bernie Sanders and Kirsten Gillibrandoutlined three specific actions that they believe Department of Education (DOE) must take to provide relief before Donald Trump takes office.

“Too many student borrowers have fallen prey to predatory schools, most of which are for-profit colleges.“, the letter states. These institutions have disproportionately targeted vulnerable groups, including veterans, low-income students, and first-generation college studentsoften leaving them saddled with debt and no qualifications to show for it. Lawmakers have highlighted the financial consequences of this, with borrowers delaying life milestones like buying a home or starting a family because of crushing debt.

Since 2022, the DOE has provided loans to more than 1.2 million borrowers who attended notorious for-profit schools like Corinthian Colleges, ITT Technical Institute, and DeVry University. However, court records reveal that hundreds of thousands of borrowers are still waiting for help. By the end of October, a quarter of Corinthian borrowers had not had their loans repaid, and many others had not received promised repayments. Proponents argue that addressing these delays is a moral and practical imperative.

Alex Beene, a financial literacy expert, highlighted the urgency: “The organizations examined have a documented history of poor treatment of borrowers. Debt forgiveness is the simplest way to resolve these issues and allow former students to move forward.“

Biden faces pressure to clear backlog of student loan forgiveness cases

Democrats also urged Biden to cancel student loans at 50 other institutions with documented misconduct, including The Career Institute and Premier Education Group. They stressed that defrauded students should not bear the financial burden of institutions that no longer exist.

The stakes are high, like President-elect Trump committed to dismantling the DOE, potentially jeopardizing federal programs like Pell Grants and FAFSA. Critics point out the irony of Trump’s history with Trump University, a defunct for-profit company that settled a $25 million fraud lawsuit in 2018.

Kevin Thompson, CEO of 9i Capital Group, warned of the consequences of inaction: “If these measures are not implemented now, they are unlikely to be implemented under the next administration, which is focused on limiting government spending.“.

With more than 42 million Americans carrying $1.6 trillion in student debtBiden’s legacy on this issue is at stake. For millions, quick action could be the difference between financial freedom and prolonged hardship.