The Department of Education announced Wednesday that it will cancel an unprecedented amount of student debt for students who attended one for-profit institution.
The department approved $5.8 billion in full loan discharges for 560,000 borrowers who attended a campus owned or operated by Corinthian Colleges. This "is the largest single loan discharge" in the history of the department.
Vice President Kamala Harris' investigation into Corinthian, which was conducted during her time as California’s attorney general, "played a key role in developing findings against the for-profit college chain," the department said.
"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 the announcement. "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.
"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 institutions – and the corporations that own them – never again get away with such abuse," Cardona continued.
While this debt cancellation is for borrowers of federal student loans, those with private student loans who are looking to lower their monthly payments could consider refinancing. Visit Credible to find your personalized interest rate without affecting your credit score.
0 Comments