WHITE HOUSE
Education Department to cancel $5.8B in debt for students of Corinthian Colleges
The largest-ever loan forgiveness action by the Education Department will affect about 560,000 borrowers.
An Everest College location in Woodbridge, Va., on July 6, 2014. Kristoffer Tripplaar / Sipa USA/AP file
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SAVE
June 1, 2022, 8:29 PM CDT
By Zoë Richards
The Biden administration on Wednesday announced the largest student loan
forgiveness step by the Education Department with the cancellation of $5.8
billion in federal student loans for hundreds of thousands of students who
attended schools affiliated with Corinthian Colleges.
The action will erase debt for about 560,000 borrowers who enrolled in the
for-profit Everest, Heald and WyoTech colleges, which Corinthian owned or
operated before it folded in 2015 following an investigation by the Education
Department.
Borrowers do not need to take any action to have their loans forgiven, the
agency said.
In a news release Wednesday, the Education Department said it is “also
working on new regulations that will permanently improve a variety of the
existing student loan relief programs, significantly reduce monthly payments,
and provide greater protections for students and taxpayers against
unaffordable debts.”
Biden’s promise for student loan forgiveness stirs controversy
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An investigation the Education Department led in 2014 found that Corinthian
Colleges misled students by inflating its job-placement rates. The company,
which once operated 105 campuses in 25 states, effectively collapsed in 2015
and was forced to close or sell its campuses after the Education Department
began withholding federal loan funds.
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