Determines over a half million students preyed upon by Corinthians Colleges.
On Wednesday, the Department of Education announced that they will fully cancel all remaining federal student loans connected to Corinthian Colleges, Inc. The for-profit college was shut down in 2015 after multiple federal and state investigations probed the institution regarding whether or not it engaged in deceptive advertising. This decision will result in 560,000 borrowers being forgiven of a total of $5.8 billion in student loans. It is the largest single loan discharge in the history of the Department of Education and brings the total student debt relief extended by the president’s administration to $25 billion.
Education Secretary Miguel Cardona stated, “While our actions today will relieve Corinthian Colleges’ victims of their burdens, the Department of Education is actively ramping up oversight to better protect today’s students from tactics and make sure that for-profit institutions — and the corporations that own them — never again get away with such abuse.”
President Biden is said to be considering canceling an additional $10,000 in student loan debt for all borrowers earning less than $50,000 per year, or for joint filers earning less than $300,000. Opponents of his program predict that the president’s relief could exacerbate already historic inflation.
As the Lord Leads, Pray with Us…
- For the president and his education advisors as they plan for additional federal student loan relief.
- For Secretary Cardona and other Education Department officials as they implement education programs.
- For wisdom for Chief Operating Officer Cordray as he leads the Federal Student Aid office.
Sources: Washington Examiner, CNBC, Reuters
