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US To Cancel $5.8 Billion Student Debt From College.
The US government will forgive $5.8 billion in outstanding debt for Corinthian Colleges Inc. students who were deceived and defrauded - a major loan cancellation that comes as President Biden considers a broader proposal.
Vice President Kamala Harris, who sued Corinthian as California’s attorney general, will make the announcement Thursday, fully discharging the loans held by a total of 560,000 borrowers.
During a briefing call Wednesday, officials said that Corinthian followed a pattern of cheating its students by falsely stating its programs.
Some students with outstanding debt will receive refunds of payments already made, the officials said. It applies to every borrower with a loan balance who attended Corinthian from its founding in 1995 to its 2015 closing.
This is the largest single loan discharge in the history of the Education Department. US President Joe Biden continues to weigh whether to try to enact widespread loan cancellation but has deferred payments on federal student loan debt since taking office.
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