June 1, 2022
The Biden administration says it will cancel federal student loans for some 560,000 borrowers who attended the for-profit Corinthian Colleges chain.
Under the new action, hundreds of thousands of students who attended the now-defunct chain will receive $5.8 billion in full loan discharges – the largest of its kind in the Department of Education’s history.
“As of today, every student deceived, defrauded and driven into debt by Corinthian Colleges can rest assured that the Biden-Harris Administration has their back and will discharge their federal student loans,” Education Secretary Miguel Cardona said in a statement. “For far too long, Corinthian engaged in the wholesale financial exploitation of students, misleading them into taking on more and more debt to pay for promises they would never keep.”
Thousands of former Corinthian students were already eligible for debt cancellation, but they had to file paperwork and navigate an application process that advocates say is confusing and not widely known.