Education Department to cancel $5.8 billion in debt for students of Corinthian Colleges
The Department of Education will cancel $5.8 billion in federal student loans for thousands of students who attended schools affiliated with Corinthian Colleges.
The Biden administration on Wednesday announced the largest student loan forgiveness step by the Education Department with the cancellation of $5.8 billion in federal student loans for hundreds of thousands of students who attended schools affiliated with Corinthian Colleges.
The action will erase debt for about 560,000 borrowers who enrolled in the for-profit Everest, Heald and WyoTech colleges, which Corinthian owned or operated before it folded in 2015 following an investigation by the Education Department.
Borrowers do not need to take any action to have their loans forgiven, the agency said.
In a news release Wednesday, the Education Department said it is “also working on new regulations that will permanently improve a variety of the existing student loan relief programs, significantly reduce monthly payments, and provide greater protections for students and taxpayers against unaffordable debts.”
Biden’s promise for student loan forgiveness stirs controversyMay 14, 202203:26An investigation the Education Department led in 2014 found that Corinthian Colleges misled students by inflating its job-placement rates. The company, which once operated 105 campuses in 25 states, effectively collapsed in 2015 and was forced to close or sell its campuses after the Education Department began withholding federal loan funds.
Rating: 5