The Biden Administration will cancel all outstanding student loan debts accrued by students of Corinthian Colleges, one of the largest for-profit education companies that declared bankruptcy in 2005, CNBC reports. The loan forgiveness will impact more than half a million former students, removing $5.8 billion in debt.
Before its bankruptcy, Corinthian had been accused of predatory lending practices whereby it would get its students to apply for excesses student loans so it would enrich its bottom line, knowing that the students wouldn’t be able to finish coursework or would be enrolled in useless classes. They preyed upon people who could get loans through the VA or other government programs.
“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,” U.S. Secretary of Education Miguel Cardona said in a statement.