The Biden administration will forgive the student loan debt of about 560,000 borrowers who attended schools formerly operated by for-profit education provider Corinthian Colleges.
The Department of Education announced Wednesday the decision that will settle about $5.8 billion in student debt as the administration considers broader student-loan forgiveness measures.
Corinthian Colleges was accused of predatory and unlawful practices and filed for Chapter 11 bankruptcy in 2015. It faced a lawsuit from the Consumer Financial Protection Bureau, and Vice President Kamala Harris also prosecuted the company when she was California Attorney General.
At its peak, Corinthian Colleges was one of the largest for-profit educational companies in North America with more than 100 campuses and more than 80,000 enrolled students as of 2013.
Schools of the Corinthian Colleges
Corinthian Colleges operated Everest, which included Everest Institute in New York, Everest College in Phoenix, Arizona and Everest University in Florida, and Everest University Online.
Everest has also had a large number of other locations across the US, including in California, Texas, Utah and Virginia.
The company also operated Heald College, which offered degrees in business and accounting, among others, and had 10 campuses in California, one in Oregon and another in Hawaii, as well as an online learning center.
The Corinthian Colleges also operated WyoTech, which focused on training for technical trades in areas such as plumbing, the automotive sector, and the aircraft sector. WyoTech had five locations. Two were in California and one each in Pennsylvania, Florida and Wyoming.
According to its website, as of 2013, the company had a total of 105 Everest, Heald, and WyoTech schools in 25 states.
Education Secretary Miguel Cardona said in a statement on Wednesday, “Starting today, any student who is being deceived, cheated and driven into debt by Corinthian Colleges can rest assured that the Biden-Harris administration has their back and will pay off their federal student loans.” “
Those who qualify for loan forgiveness will be notified in the coming weeks, and the relief should be automatic, eliminating the need for paperwork. Senior administration officials said on Wednesday former students who have outstanding debts will be refunded previous payments.
The move comes as the Biden administration is reportedly considering a broader student debt relief program that may include canceling student loan debt by $10,000 per borrower, limited to those who earned less than $150,000 in the previous year , or to married couples who applied together and earned less than $300,000.
Some senior Democrats have urged Biden to go further and forgive up to $50,000 in debt per borrower, but the president has expressed skepticism about his power to service that amount of debt through executive action.
https://www.newsweek.com/corinthian-colleges-list-biden-student-loan-debt-1712312 List of Corinthian colleges as Biden cancels student loan debt for 500,000 people