Biden Admin Approves Cancelation of $5.8 Million in Student Loans
The United States Department of Education canceled around 5.8 billion in outstanding student loans of over 560,000 borrowers, making it the largest single loan forgiveness action that has been done by the government to date, the department revealed on Wednesday.
The cancelation is applicable to everyone who went to schools operated by the Corinthian Colleges. It was one of the largest for-profit education companies that needed to file for Chapter 11 bankruptcy back in 2015.
The education company has faced multiple lawsuits since it was founded back in 1995. One of the most notable ones is a lawsuit from 2013, in which Vice Pres. Kamala Harries sued Corinitan while she served as the attorney general of California for “deceptive and false advertising and recruiting” among other allegations, as per the Education department.
“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.
Borrowers of Canceled Student Loans to be Given a Notification
Those who qualify won’t have to fill out an application to receive the relief as it will be automatic. They will receive a notification within a few weeks, as per the said department.
The news announced on Wednesday comes as the Biden administration is considering broader student loan forgiveness that would benefit millions of borrowers. As of writing, the Biden administration has approved loan forgiveness collectively worth $25 billion for around 1.3 million borrowers.
Even though several politicians and economists lauded the move, calling it a step in the right direction toward tackling the student debt crisis worth $1.7 trillion, borrowers in the millions have not seen relief yet, with many wondering when, and if, their loans will be one of those forgiven.