The Biden administration is set to discharge all remaining federal student loans borrowed to attend Corinthian Colleges, which will amount to $5.8 billion in full loan …
The Biden administration is set to discharge all remaining federal student loans borrowed to attend Corinthian Colleges, which will amount to $5.8 billion in full loan discharges to 560,000 recipients, the U.S. Department of Education announced on June 1. It comes after Corinthian, which was one of the largest for-profit post-secondary education companies in the United States, faced a string of allegations that it had intentionally deceived, defrauded, and financially exploited students. According to the department, the group loan discharge will apply to all former students who attended any campus owned or operated by Corinthian Colleges Inc. since it was founded in 1995 through its closure in 2015. This includes borrowers who have not yet applied for a borrower defense loan repayment discharge, a federal regulation that allows student loan borrowers to seek debt relief if they attended a school that misled them, engaged in other misconduct, or violated state law related to the loan, officials said. Those former students will have their Corinthian loans discharged without the need for any additional action on their part. The loan discharge is the largest single such action the Department has made in history and is part of the Biden-Harris administration’s “continued commitment to helping borrowers who are struggling the most by ensuring discharge programs provide borrowers the complete relief to which they are entitled,” according to the department.
