WASHINGTON D.C. — Students who were defrauded by their colleges and received only partial relief from their federal loans could now see them fully canceled.

The change proposed by the Biden administration could lead to $1 billion in loans being canceled for 72,000 borrowers, all of whom attended for-profit schools, the Education Department said.

“Borrowers deserve a simplified and fair path to relief when they have been harmed by their institution’s misconduct,” Secretary of Education Miguel Cardona said. “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.”

The department said it is rescinding a formula used by the Trump administration to determine partial relief and putting a “streamlined path to receiving full loan discharges” in place.

In addition to having their loans canceled, students will be reimbursed for any payments made on the loans and have their eligibility for federal student aid reinstated.

The department also said it would ask credit bureaus to remove any negative ratings tied to the loans.

The decision applies to students who already had their claims approved and received only partial relief.