Cancellation of Student Financial Obligations for Corinthian Educational Institutions

The issue of student debt has sparked widespread discussion in the United States, with numerous individuals, both young and old, burdened with increasing debt that many simply cannot feasibly repay. Consequently, calls for the widespread forgiveness of such debts have arisen, aiming to provide these individuals with an opportunity to rebuild their lives without the constant financial strain.

This week brought news of a significant debt forgiveness initiative. The Biden Administration recently declared that the debts of more than 560,000 students who enrolled in Corinthian College, a series of for-profit colleges known for their exploitative financial practices, will be absolved. In total, this forgiveness is set to eliminate around $5.8 billion in student loan debt, marking the most substantial loan forgiveness action by the US Department of Education to date.

Education Secretary Miguel Cardona stated, “Today, every student misled, victimized, and burdened by Corinthian Colleges can find solace in knowing that the Biden-Harris Administration is committed to relieving their federal student loan obligations. Corinthian long profited from financially deceiving its students, enticing them into amassing excessive debt to finance promises never fulfilled.”

Major Development: The US Department of Education has announced the cancellation of $5.8 billion in debts owed by attendees of Corinthian Colleges, marking their largest student debt forgiveness measure. https://t.co/S5MKUs6KIB

— The New York Times (@nytimes) June 2, 2022

While numerous Corinthian students were previously qualified for debt relief, the complex application system of the institution prevented many from successfully claiming refunds. With this recent announcement, the refund process is being automated. Furthermore, former and current students of Corinthian who still hold outstanding balances will not only have the balances forgiven but will also receive refunds for any prior payments they made. Regrettably, the Education Department is unable to provide refunds to students who have already repaid their loans in full.