The Biden administration has announced that it will cancel $5.8 billion in student debt for people who attended certain for-profit colleges, CBS News reported.
CBS News reported that the announcement was made Wednesday and will affect hundreds of thousands of students who attended Corinthian Colleges, a for-profit chain.
The Biden administration announced that federal student loans will be automatically cancelled for the student.
“As of today, every student deceived, defrauded and driven into debt by Corinthian Colleges can rest assured that the Biden-Harris Administration has their back and will discharge their federal student loans,”Miguel Cardona, Education Secretary, said in a statement. “For far too long, Corinthian engaged in the wholesale financial exploitation of students, misleading them into taking on more and more debt to pay for promises they would never keep.”
According to the administration, debt cancellation should occur automatically. The administration stated that no paperwork or relief applications are required and that qualifying borrowers should be notified within weeks.
Corinthian Colleges is accused of predatory and illegal practices. They were also subject to lawsuits by the Consumer Financial Protection Bureau, as well as Vice President Kamala Harris, who was Attorney General of California. NBC News. In 2015, the company filed Chapter 11 bankruptcy.
According to the Biden/Harris administration’s latest announcement, student loan cancellations approved by the Biden administration have risen to $25 Billion since January 2021. CNN.