The U.S. Department of Education announced that it would repay all remaining federal student loans borrowed to attend any campus owned or operated by Corinthian Colleges Inc. from its founding in 1995 until its closure in April 2015, marking the largest single loan release ever granted by ED.
As a result, 560,000 borrowers will receive $5.8 billion in full loan discharges, including those who have not yet requested a Borrower Defense Release.
The Biden-Harris administration has approved $25 billion in total loan relief for borrowers since January 2021.
The action builds on 2015 ED findings that the for-profit college chain engaged in false claims about job prospects, misrepresented prospective students about ability to transfer credit and falsified their placement rates in the public sector.
“Starting today, every student deceived, defrauded and indebted by Corinthian colleges can be assured that the Biden-Harris administration has their back and will repay their federal student loans,” said the U.S. Secretary of Education, Dr Miguel Cardona. “For too long, Corinthian has engaged in the large-scale financial exploitation of students, driving 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 stepping up oversight to better protect today’s students from the tactics and ensure that institutions to profit – and the corporations that own them – never get away with it again. with such abuse.
The ED will soon begin notifying students who have attended Corinthian of this action, with releases in the coming months. Borrowers will not have to do anything.