Biden Administration Discharges $5.8 Billion for Defrauded Loan Borrowers

"The Department of Education announced it is forgiving $5.8 billion in federal student loan debt from borrowers who were deceived over a period of two decades by for-profit Corinthian Colleges, the largest single cancellation of debt in the department’s history," University Business reports.

..."Corinthian Colleges, Inc. at one time had more than 110,000 students and 110 campuses, including its locations in Wyoming and California (Everest, Heald College and WyoTech) where students were defrauded. But by 2015, it had shut down its remaining colleges and sold off its remaining assets. Concerns about compliance issues had been raised about Corinthian in 2012, and it took nearly a decade from the time of the initial investigation for borrowers to get relief.

'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,' said Justin Draeger, CEO of the National Association of Student Financial Aid Administrators (NASFAA). '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.'"

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Articles included under the notable headlines section are not written by NASFAA, but rather by external sources. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.


Publication Date: 6/2/2022

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