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The Biden administration just canceled $5.8 billion in student loans—and more borrowers could see relief soon

The U.S. Department of Education canceled about $5.8 billion in outstanding student loans for more than 560,000 borrowers in the largest single loan forgiveness action taken by the government to date, the department announced Wednesday.

The cancellation applies to all those who attended schools operated by the now-defunct Corinthian Colleges, one of the largest for-profit education companies that filed for Chapter 11 bankruptcy in 2015.

Corinthian Colleges has faced several lawsuits since its founding in 1995 — but perhaps the most notable is from 2013, when Vice President Kamala Harris sued Corinthian while she was attorney general of California for “deceptive and false advertising and recruiting” among other allegations, according to the department.

“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,” U.S. Secretary of Education Miguel Cardona said in a statement.

Qualifying borrowers won’t need to fill out the application to receive the relief, either: it will be automatic, and they are expected to be notified within weeks, the department said.

Wednesday’s news comes as the Biden administration considers broader student loan forgiveness for millions of borrowers — so far, the administration has approved $25 billion in loan forgiveness for about 1.3 million borrowers.

While some politicians and economists hailed the move as a step in the right direction toward addressing the $1.7 trillion student debt crisis, millions of borrowers have yet to see relief and are wondering when, and if, their loans will be forgiven.

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4 thoughts on “The Biden administration just canceled $5.8 billion in student loans—and more borrowers could see relief soon”

  1. While they are reimbursing peoples’ losses that are due to fraud, maybe they will reimburse me for the $50,000 I lost to EMRON…. Seems only fair..

  2. Concerned Retiree

    No money for SSI, since it is being used for ways that was never intended plus giving to illegals and train migration for all the legal migrants relatives that never worked in US. So where is this money coming from, since there is not a fund for this elite money for the snowflakes? Why can’t SSI benefits for seniors only get a $100 a month raise?

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