Forgiving the debt of hundreds of thousands of borrowers is a welcome relief and a step toward repairing our broken student loan system. 

FOR IMMEDIATE RELEASE
Contact: Erin Powers
Director of Marketing & Communications
(202) 785-6959
[email protected]

WASHINGTON, D.C., JUNE 1, 2022 — The Department of Education (ED) today announced it will cancel $5.8 billion in student loans for 560,000 students who attended campuses of the for-profit chain Corinthian Colleges, Inc., which abruptly closed its doors in 2015.

NASFAA President Justin Draeger issued the following statement: 

"The long backlog of borrower defense claims illustrates how even the best intentioned public policy is only as good as what can realistically be implemented. These borrowers have waited far too long for adjudication and relief, and we applaud the Biden administration for finally taking steps to bring them closure. 

Sudden campus closures can leave students in limbo, and that’s made all the more complex when students have taken out loans to help pay educational expenses at now defunct institutions. 

While we applaud the Department of Education for this targeted relief, we also call on the administration and Congress to begin working on systemic student loan reform. Student loan forgiveness — no matter how well targeted — will not solve the long-term issues that plague our student loan system. NASFAA, in partnership with more than 20 organizations, has done just that, and we urge policymakers to give these comprehensive student loan reform ideas full consideration to fix a broken system that leaves too many students and parents hopelessly buried in student loan debt.”

About NASFAA 

The National Association of Student Financial Aid Administrators (NASFAA) is a nonprofit membership organization that represents more than 32,000 financial aid professionals at approximately 3,000 colleges, universities, and career schools across the country. NASFAA member institutions serve nine out of every 10 undergraduates in the U.S. Based in Washington, DC, NASFAA is the only national association with a primary focus on student aid legislation, regulatory analysis, and training for financial aid administrators. For more information, visit www.nasfaa.org.