President Biden has canceled $1 billion worth of student debt for those who attended for-profit colleges.

Forbes reports that 72,000 student loan borrowers were freed of their debt if they attended a college that engaged in deceptive or illegal practices, as well as those who had attended an institution that suddenly closed.

The outlet added that the debt will be canceled tax-free and that this is likely not the only time that the Biden Administration will cancel student debt during his administration.

The Education Department said in a March 18 announcement that the relief would only apply to those whose applications had already been approved and only received partial relief, but it was creating "a streamlined path to receiving full loan discharges."

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The Associated Press reports that a senior department official is reviewing the claims made for debt relief which have been denied or remain undecided.

"Borrowers deserve a simplified and fair path to relief when they have been harmed by their institution's misconduct," Education Secretary Miguel Cardona said in a news release.

"A close review of these claims and the associated evidence showed these borrowers have been harmed, and we will grant them a fresh start from their debt."

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Borrower defense received a total of 343,331 applications for relief by February 28, 2021, and 61,511 of them were approved.

The Obama administration had expanded the borrower defense repayment program which enables the cancellation of loans for students who enrolled in colleges under false pretenses.

However, Trump's education secretary, Betsy DeVos, said that it was too easy for students to relieve themselves of debt and went on to revise legislation to make it harder to do.

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Eligible borrowers will not only be freed of their remaining debt, but they will be reimbursed for any payments they have made, with the Education Department also requesting the credit department to remove any negative ratings caused by the loans.

Toby Merrill, director of the Project on Predatory Student Lending, which represents the interests of students who have attended for-profit colleges said that the debt cancellation was a "strong start" for eligible borrowers, the Associated Press added.

However, he added: "What we need from the Education Department is an overhaul of the current borrower defense process.

"The previous administration turned borrower defense into a total sham that was rigged to deny claims without any true consideration. The Biden-Harris administration must now address these failings or else perpetuate a system that is stacked against the very students they are supposed to protect."

Featured image credit: Kevin Dietsch/Alamy

President Biden cancels $1 billion worth of student debt