For former students of the defunct Corinthian Colleges for-profit schools, student debt payments are a thing of the past.
Many of those students were already eligible for debt forgiveness, but had to negotiate an application process. Not anymore. On Wednesday, June 1, 2022, the Biden administration canceled their debts. Gone. Poof.
The action eliminates $5.8 billion of debt owed by 560,000 borrowers, an average of more than $10,000 per borrower.
A story in Huffington Post (read it here) says the move “aims to bring closure to one of the most notorious cases of fraud in American higher education.” (See details here.) The company, founded by Wall Street sharks in 1995, collapsed in 2015.
The Project on Predatory Student Lending, which represented former Corinthian students in lawsuits, describes the students as “cheated and abused.”