Students of Corinthian Colleges, including many veterans who attended for-profit colleges, will have debts dismissed. Will others get relief?
The Department of Education announced it is forgiving $5.8 billion in federal student loan debt from borrowers who were deceived over a period of two decades by for-profit Corinthian Colleges, the largest single cancellation of debt in the department’s history.
Corinthian, which has been shuttered since 2015, had taken advantage of more than a half-million students including many veterans, by repeatedly making false claims that it could transfer credits when it couldn’t and by promising guarantees of jobs after graduation. Vice President Kamala Harris, then-attorney general in California, launched an investigation that uncovered widespread misrepresentations by Corinthian in 2013, and the Consumer Financial Protection Bureau and attorneys general from other states rallied to help shut down the business. Since then, nearly 100,000 borrowers have had their loan debt discharged.
“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,” U.S. Secretary of Education Miguel Cardona said. “While our actions today will relieve Corinthian Colleges’ victims of their burdens, the Department of Education is actively ramping up oversight to better protect today’s students from tactics and make sure that for-profit...
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