The Department of Education announced Wednesday it will forgive all remaining federal loans students borrowed to attend any campus operated by Corinthian Colleges.
The department said it is the largest single loan discharge in its history and will save 560,000 borrowers a total of $5.8 billion after an investigation revealed the company deceived students.
The department said Corinthian falsified its colleges’ public job placement rates and guaranteed jobs to borrowers. Corinthian also made misstatements to prospective students about the ability to transfer credits.
Corinthian was founded in 1995 and at its peak in 2010, enrolled more than 110,000 students at 105 campuses until it closed in April 2015.
In 2016, then-California Attorney General Kamala Harris and the state of California obtained a $1 billion judgment against Corinthian. The judge found the company misrepresented job placement rates, while engaging in false advertising and deceptive recruitment.
“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,” Secretary of Education Miguel Cardona said.
“For far too long, Corinthian engaged in the wholesale financial exploitation of students, misleading them into taking on more and more debt to pay for promises they would never keep.”
Corinthian students can expect to hear from the department in the next few weeks to notify them of the decision. The department said actual loan discharges should follow in a few months. Borrowers do not have to take any actions to cancel their loans.
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So now WE THE PEOPLE have become insurance providers for “Caveat Emptor” Stupidity? We the American taxpayers should not be punished for other people’s bad life choices. Poop happens, and it is people’s own job to clean up their own messes, not with funds stolen in presidential edicts which they have no Constitutional right to spend. CONGRESS not criminal Executive Presidents are the only people authorized with the power of the purse. Let the Impeachments begin.
As for the Corinthians ” If they speak with the tongues of criminals and politicians, but have no love for THE PEOPLE of honesty, they become as noisy gongs and clanging symbols, of just how corrupt one party can get when total power is assumed.
YUP>> WE are the ones on the hook for all of this..
bankrupt … finacial and moral!
The department said it is the largest single loan discharge in its history and will save 560,000 borrowers a total of $5.8 billion after an investigation revealed the company deceived students. Corinthian (and therefore Everest itself) came under scrutiny from Federal regulators and watchdog agencies for misrepresenting its post-grad placement rates and targeting vulnerable, low-income students by pressuring them to take out student loans in order to attend the school.
So if I buy a used car and the car lot engaging in false advertising and the salesman was dishonest and deceptive.
I can expect the treasonous socialist Biden-Harris administration to have my back and will discharge my car loan and make the tax payers to pay off my car??
This is just another treasonous socialist Democrat Party’s Con and deception in order to buy votes with taxpayers money and promote socialism.
Nope.. YOU ain’t a leftist brainwashed indoctrinated teen who wil vote dem for life.