If you’re one of 560,000 borrowers with a federal student loan for attending Corinthian Colleges, a defunct chain of for-profit schools, you don’t have to worry about it anymore.
The federal government is discharging all $5.8 billion in federal student loan debt that people owe for going to Corinthian, which shuttered in 2015, the Department of Education said Thursday. Government officials said students deserve to be relieved from those loans because they were misled by the colleges, which made false claims about students’ employment prospects, including erroneously guaranteeing they would find a job after graduation.
About 100,000 other Corinthian students had already had their loan debt canceled. Those students had to file a borrower defense claim to receive the debt relief. In the latest development, however, the debt forgiveness will be automatic. All borrowers who took out federal loans to attend Corinthian will have their loans zeroed out, without any action on their part.
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