The United States will erase $5.8 billion in outstanding debt for students of the now-defunct Corinthian Colleges Inc., whom the government claims were duped and cheated — a significant loan cancellation that comes as President Joe Biden explores a broader plan.
Vice President Kamala Harris, who sued Corinthian as California’s attorney general, will make the news on Thursday, completely canceling 560,000 students’ debts.
Officials from Corinthian told reporters on a conference call Wednesday that the company has a practice of deceiving its students by fraudulently advertising its programs.
Officials noted that some students with outstanding debt will get refunds for payments previously made. It applies to all borrowers who attended Corinthian between its inception in 1995 and its closure in 2015.
It is the greatest single debt discharge in the history of the Education Department. Biden has postponed payments on federal student loan debt since assuming office, but he is still debating whether to try to legislate universal loan cancellation.