Department of Education to Forgive Student Loans of Corinthian Colleges' Former Students
There has been a lot of talk about whether and how much student loan debt President Joe Biden might be willing to cancel via executive action, with the most recent news indicating it could be $10,000 per borrower. But late in the day Wednesday, the U.S. Department of Education announced it would "discharge all remaining federal student loans borrowed to attend any campus owned or operated by Corinthian Colleges Inc. (Corinthian) from its founding in 1995 through its closure in April 2015." This amounts to about $5.8 billion in loan forgiveness for more than 550,000 borrowers. Corinthian, a for-profit higher education chain that was the subject of criticism for its questionable student recruiting practices, went out of business seven years ago.
This executive action is just one example of the Biden administration forgiving student loan debt under certain circumsances. As CNN reports: "Wednesday's announcement is the latest -- and biggest -- action taken by the Biden administration to cancel federal student loan debt for borrowers who were defrauded by their for-profit colleges. The administration has also made it easier for permanently disabled borrowers as well as public sector workers to receive debt relief."
From the New York Times: "The debt cancellation will be automatic, meaning former Corinthian students will not have to apply to have their debts canceled. The Education Department will eliminate any remaining balance on the federal student loans of those who attended any Corinthian campus or online program during the chain’s 20-year existence."