The U.S. Department of Education Cancels Student Loan Debt For Beauty School Students in California

Carla St. Louis

If you're a past student at a California-based beauty school that defrauded you, you're in luck.

The U.S. Department of Education (ED) cancels loan debt for 28,000 students of Marinello Schools of Beauty, a defunct for-profit college, says an April 28 press release. According to the ED, it will cancel the debt via its borrower defense program.

The program targets students who attended the school from 2009 through 2016, a period the agency says was marked by “pervasive and widespread misconduct” when it came to federal funding.

The school had locations throughout the United States, including Sacramento and Stockton, up until it closed, reports ABC10.

How Does it Work?

It’s simple: if you can prove that you were defrauded by the school, the forgiveness initiative erases your debt.

It will give $238 million in debt relief, and that includes past students who haven’t applied for a borrower defense charge.

According to the ED, it approved 300 borrower defense claims at Marinello as of July 2021.

What Happened?

ED says the school made “widespread, substantial misrepresentations about the instruction that would be offered at its campuses across the country. The Department found that the schools failed to train students in key elements of a cosmetology program, such as how to cut hair. It also found that Marinello left students without instructors for weeks or months at a time as part of a pattern of failing to provide the education it promised.”

The ED says it wanted to streamline the debt relief caused by Marinello’s “lies" by relieving the borrows of the financial burden in a group claim.

"Marinello preyed on students who dreamed of careers in the beauty industry, misled them about the quality of their programs and left them buried in unaffordable debt they could not repay,” says Education Secretary Miguel Cardona.

Debt forgiveness is in the news again after lawmakers alluded that President Joe Biden is considering forgiving student loan debt.

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