VP Kamala Harris formally announced the cancellation of all remaining student loan debt from Corinthian Colleges today, capping off one of the most notorious for-profit college fraud scandals.
Vice President Kamala Harris, who sued Corinthian as attorney general of California, will formally announce the loan forgiveness at the Education Department on Thursday. | Chip Somodevilla/Getty ImagesThe Biden administration plans to forgive all federal student loan debt still owed by more than a half million borrowers who attended Corinthian Colleges, capping off one of the most notorious for-profit college fraud scandals whose fallout has now spanned three presidencies.
Harris will roll out the nearly $6 billion in loan forgiveness on Thursday as the White House finalizes plans forBut those sweeping debt cancellation plans are separate from the Corinthian loan forgiveness, which is the culmination of a years-long saga over how and whether the Education Department should provide relief to the hundreds of thousands of students who attended the schools.
“We’ve reached a determination that every borrower who attended Corinthian was subject to illegal conduct at Corinthian,” another senior administration official told reporters on Wednesday. The official said the Education Department “determined that these Corinthian borrowers as a group are eligible for borrower defense.”
The Debt Collective, an offshoot of Occupy Wall Street, in 2015 kicked off the national debate over loan forgiveness after it organized a “debt strike” in which hundreds of former Corinthian students refused to pay their federal debts. On Wednesday, the Debt Collective declared victory after what it said were “years of harmful delays and half measures under Democratic and Republican leadership.”
When former Education Secretary Betsy DeVos came into office in 2017 she took a different approach, criticizing the Obama administration for effectively giving away “free money” to borrowers who did not need or deserve it. DeVos scrapped the Obama-era rules and curtailed loan forgiveness, though some of her policies were blocked in court.
Jason Altmire, a former Democratic congressman who now leads the for-profit college trade association Career Education Colleges and Universities, said in a statement on Wednesday that Corinthian’s actions “do not represent” the entire sector that he represents.
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