The Joe Biden administration is offering a new round of student loan debt relief for 560,000 borrowers who attended any of the Corinthian universities. This decision puts an end to one of the most notorious fraud cases in higher education in the country.
Such action will see $5.8 billion in total loan cancellations marking the cancellation of loans more largest in the history of the Department of Education and raises a total break in student debt extended by the administration to $25 billion.
Before As of Wednesday, the administration had extended the benefit of loan debt to more than 1.3 million borrowers through the Public Service Loan Forgiveness program, borrower advocacy initiatives, permanent disability discharges and other measures that help borrowers. students defrauded by schools.
The Department of Education confirmed for its part that all students who have ever attended Corinthian and who were defrauded, as well as all those who have remaining federal loans are eligible for defense of the borrower.
So far it is known that there are approximately 100,000 borrowers of Corinthian those who have benefited from said announcement.
“As of today, all students cheated, defrauded and indebted by Corinthian Colleges can be sure that the Biden-Harris Administration supports them and it will cancel its federal student loans”, said the Secretary of Education, Miguel Cardona through a statement.
And he added: “For a long time Corinthian was dedicated to the wholesale financial students, tricking them into deeper and deeper debt to pay for promises they would never keep. While our actions today will relieve the victims of Corinthian Colleges of their burdens, the Department of Education is actively increasing oversight to better protect today’s students from tactics and ensure that for-profit institutions, and corporations that own them, never again run away. with so much abuse.”
This announcement comes just as Joe Biden is reportedly considering the cancellation of $10,000 additional student loan debt for all borrowers earning less than $150,000 per year or for those parents who declare jointly that they earn less than $300,000.