Biden admin to cancel $5.8B in school loans for former Corinthian College students

The Biden administration says it will cancel federal student loans for some 560,000 borrowers who attended the for-profit Corinthian Colleges chain. 

Under the new action, hundreds of thousands of students who attended the now-defunct chain will receive $5.8 billion in full loan discharges – the largest of its kind in the Department of Eduction's history. 

Education Secretary Miguel Cardona speaks during the National and State Teachers of the Year event at the White House, April 27, 2022. (AP Photo/Susan Walsh, File)

"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," Education Secretary Miguel Cardona said in a statement. "For far too long, Corinthian engaged in the wholesale financial exploitation of students, misleading them into taking on more and more debt to pay for promises they would never keep."

Thousands of former Corinthian students were already eligible for debt cancellation, but they had to file paperwork and navigate an application process that advocates say is confusing and not widely known.

Those who have a remaining balance on their debt will also get refunds on payments they have already made, Education Department officials said. Students who have paid off their school loans will not be eligible.