Hundreds of thousands of non-profit Corinthian Colleges students will automatically receive cancellations of their federal student loans, the Biden administration said Wednesday, a move aimed at ending one of the most notorious cases of fraud at U.S. universities. education.
Under the new action, anyone who attended the now-defunct chain from its inception in 1995 until its collapse in 2015 will delete their federal student duties. That would wipe out $ 5.8 billion in debt to more than 560,000 borrowers, the largest loan release in the history of the education ministry, according to the agency.
“As of today, every student, deceived, deceived and indebted to Corinthian Colleges, can rest assured that the Biden-Harris administration has its back and will pay off their federal student loans,” said Education Minister Miguel Cardona. “For too long, Corinthian has been involved in the wholesale financial exploitation of students, misleading them into taking on more and more debt to pay for promises they will never keep.
Tens of thousands of former Corinthian students were already eligible for debt cancellation, but had to apply and navigate the application process, which advocates say is confusing and not widely known. The relief will now be made automatically and will be extended to additional borrowers.
Those who have a debt balance in Corinth will also receive refunds for payments already made, education officials said. But the action does not apply to loans that have already been repaid in full.
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