Biden Administration Cancels $5.8 Billion in Student Loans for Corinthian College Students
“The group loan discharge applies to all former students who attended any campus owned or operated by Corinthian Colleges Inc.”
Corinthian College was a network of for-profit colleges that folded in 2015.
The Hill reports:
White House cancels $5.8B in student loans for former Corinthian College students
The Biden administration is planning to discharge all outstanding federal student loans borrowed by former Corinthian Colleges students, providing $5.8 billion in loan cancellations to 560,000 borrowers.
The group loan discharge applies to all former students who attended any campus owned or operated by Corinthian Colleges Inc. since the company was founded in 1995 through its closure in 2015.
The Hill first reported earlier on Wednesday that the Biden administration was planning to administer widespread relief for former Corinthian students, citing multiple sources.
Vice President Harris is expected to announce the measure on Thursday.
The Department of Education will notify former students of Corinthian in the coming weeks through a letter, and the actual discharges will follow in the months after. Borrowers will not have to take any actions to receive their discharges, and the discharge will not impact borrowers who have already fully repaid their loans.
“We’ve reached a determination that every borrower who attended Corinthian was subject to illegal conduct at Corinthian and at that point we have a variety of legal authorities available to us to discharge those loans,” a senior administration official said.
Corinthian faced multiple investigations and lawsuits for defrauding students out of millions in federally backed loans. Since Corinthian closed, advocates like Sen. Elizabeth Warren (D-Mass.) have called on the Education Department to provide relief to former students who faced some form of debt collection.
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Comments
Yes, but he can’t change tax law by fiat, so those people should expect a hefty bill from the IRS.
True, if this falls under the same rules as writeoffs like credit cards, this will have to be reported to the IRS.
Is the federal government going to reimburse EVERYBODY who was a victim of fraud?
There is some place in some law or regulation that allows POTUS to do this ?