Biden Admin to Cancel $5.8 Billion in Student Loan Debt for Students of Corinthian Colleges
Summary from the AllSides News Team
On Wednesday, the Biden Administration announced plans to cancel $5.8 billion in student loan debt.
The debt cancellations will be for former students of Corinthian Colleges, a for-profit education company that shut down in 2015 when the Department of Education found that Corinthian's Heald College fraudulently misled prospective students about the success of their graduates. The cancellation will benefit around 560,000 students who were enrolled since Corinthian's founding in 1995. Some former students of Corinthian Colleges were already eligible to apply for debt cancellation, but this new action will be automatic and guarantees debt relief to all borrowers.
Education Secretary Miguel Cardona said Tuesday that Corinthian Colleges misled students "into taking on more and more debt to pay for promises they would never keep." At its height, Corinthian had more than 110,000 students at 100 campuses across the country. Back in April, the Biden administration extended the pause on federal student loan repayments through August.
Both left- and right-rated news sources covered the announcement of the $5.8 billion student debt cancellation prominently.
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From the LeftBiden administration cancels $5.8 billion in student loan debt for former Corinthian students
The Department of Education announced Wednesday that it will cancel $5.8 billion in student loan debt for 560,000 borrowers who attended the now-defunct network of for-profit schools known as Corinthian Colleges.
The cancellation amounts to the largest one-time discharge ever made by the Department of Education.
Some of Corinthian's former students were already eligible for debt cancellation, but the new action will ensure that all borrowers who attended from Corinthian's founding in 1995 through its closure in April 2015 will get debt relief.
At its peak in 2010, Corinthian Colleges...
From the RightBiden 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...
From the CenterBiden administration will cancel student debt for half a million students from Corinthian Colleges
The Biden administration plans to cancel all outstanding student loans for those who attended schools operated by Corinthian Colleges, formerly one of the largest for-profit education companies, the U.S. Department of Education announced Wednesday.
The schools have been accused of predatory and unlawful practices, and faced lawsuits from the Consumer Financial Protection Bureau as well as Vice President Kamala Harris when she was attorney general of California. The company filed for Chapter 11 bankruptcy in 2015.
Around 560,000 borrowers stand to benefit from the debt cancellation, which will come out to around $5.8 billion. That’s the...