The United States Department of Education has good news for many people who have student debt. And it is that it announced on Wednesday that it will cancel $5,110 million dollars in student loan debt for 250,000 people who attended the network of for-profit schools known as Corinthian Colleges, a network that, by the way, has already disappeared.
This is the largest cancellation of debt that the Department of Education has made to date and thanks to this, the administration of the president Biden has so far forgiven $25 billion in student debt since January 2021.
It should be noted that these cancellations have not been entirely satisfactory for many Democrats, who are asking the president to extend the cancellation of debts and forgive $50 thousand dollars to 43 million borrowers.
Until now, the president has only said that You are willing to pay off a portion of your federal student loan debt. In fact, since his election campaign, he has proposed paying off a minimum of $25 thousand in student debt per person, which which has also not materialized.
Regarding the cancellation of the debt of Corinthian Colleges borrowers, it should be noted that some alumni were already eligible for debt cancellation, but the new action of the Department of Education will ensure that all borrowers who attended from Corinthian’s founding in 1995 until its closing in April 2015, get the same benefit.
For 2010, more than 110,000 students were enrolled in 105 Corinthian Colleges campus.
However, the Department of Education found that Corinthian Colleges misled prospective students about the ability to transfer school credits and misrepresented their job placement rate.
Because of this, in 2013, Vice President Kamala Harris, who was California Attorney General at the time, sued Corinthian Colleges, alleging that the school was engaged in false and misleading advertising and recruitment.
The lawsuit sparked federal and state investigations that ultimately concluded that Corinthian had to sell most of its campuses in 2014 and close the rest in 2015.
For this reason, this Wednesday the administration of President Biden decided to cancel the student loan debt of the students of this network of schools that were defrauded.
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