Students From Corinthian Colleges Get Further Breaks on Debt Forgiveness
These students are lucky to get this kind of assistance.
The Associated Press reports.
More Federal Loan Debt Forgiven for Corinthian Students
The government is erasing the loan debt of more than 7,000 former students of the now-defunct Corinthian Colleges – totaling over $100 million, but still representing a tiny fraction of a federal debt-forgiveness program that could run well into the billions of dollars.
The Education Department announced Thursday that it has approved a second wave of Corinthian loan forgiveness, this one for students who filed “borrower’s defense” claims with the government, alleging they were lied to or misled by the company. Corinthian was once one of the largest chains of for-profit colleges but filed for bankruptcy protection in May 2015 amid fraud allegations.
In a progress report released by the department, Joseph Smith, who is overseeing the debt relief, said his team has approved relief to 1,300 former Heald College students, totaling nearly $28 million in loans that now will not have to be repaid to the government.
“We will continue to provide forgiveness to every student who has been similarly mistreated,” said Ted Mitchell, the department’s undersecretary.
Heald, which had campuses in California, Hawaii and Oregon, was one of three schools under the Corinthian umbrella. The other two were Everest and WyoTech schools in California, Arizona and New York.
More Federal Loan Debt Forgiven for Corinthian Students (The Associated Press)