Department of Education announces largest student loan cancellation in history
The Biden administration announced yesterday the cancellation of $5.8 billion in federal student loan debt for any student who attended Corinthian Colleges
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The Biden administration announced yesterday the cancellation of $5.8 billion in federal student loan debt for any person who attended Corinthian Colleges.
The federal government's decision represents the largest loan forgiveness ever by the Department of Education.
More than half a million students will be free of student debt immediately and without the need to go through the application process or submit documents.
The decision caps a fraud scheme by Corinthian Colleges, who were one of the nation's largest college companies with more than 100 campuses and 110,000 students at its Everest, WyoTech and Heald campuses. The company collapsed in 2015, when the Department of Education and then-Attorney General Kamala Harris released comprehensive findings showing how Corinthian misrepresented placement rates in programs around the country.
"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," said U.S. Secretary of Education Miguel Cardona.
In 2016, Harris and the state of California obtained a more than $1 billion judgment against Corinthian, in which the judge found that the company also misrepresented its program offerings and student credit transfers, among other deceptive actions.
So far, the Department of Education has approved $25 billion in loan forgiveness for 1.3 million borrowers. The Department 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.