WASHINGTON - The Biden administration says it will cancel federal student loans for some 560,000 borrowers who attended the for-profit Corinthian Colleges chain.
Under the new action, hundreds of thousands of students who attended the now-defunct chain will receive $5.8 billion in full loan discharges – the largest of its kind in the Department of Education's history. "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," Education Secretary Miguel Cardona said in a statement. "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.
Education Secretary Miguel Cardona delivers remarks during an event for the 2022 National and State Teachers of the Year in the East Room of the White House on April 27, 2022 in Washington, DC. (Photo by Anna Moneymaker/Getty Images) Thousands of former Corinthian students were already eligible for debt cancellation, but they had to file paperwork and navigate an application process that advocates say is confusing and not widely known.NJ COLLEGE GRADUATE PAYS OFF $70K IN STUDENT LOANS BY STARTING USED BOOK BUSINESSThose who have a remaining balance on their debt will also get refunds on payments they have already made, Education Department officials said.