From AB:
The Biden administration will discharge all outstanding federal student loans owed by students of any campus operated by Corinthian Colleges Inc.
It will affect 560,000 borrowers and cancel approximately $5.8 billion dollars of debt. Borrowers who have already repaid their loans will not be compensated.
According to The Hill, Vice President Kamala Harris is expected to announce the measure on Thursday.
“We’ve reached a determination that every borrower who attended Corinthian was subject to illegal conduct at Corinthian and at that point we have a variety of legal authorities available to us to discharge those loans,” a senior administration official said.
The for-profit college chain faced multiple investigations and lawsuits for “predatory and unlawful practices”. Since it declared bankruptcy and stopped operating, progressives in Congress have called for the Education Department to provide debt relief to former students.
The White House has recently indicated Biden will soon issue a decision on broad student loan debt cancellation. Officials with knowledge expect he will cancel $10,000 per borrower, but no details have been finalized.
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