Biden Administration cancels federal loans for all Corinthian students

The United States government has decided to cancel the remaining debt for over 5,60,000 students of Corinthian Colleges. The official announcement in this regard was made by the Department of Education on Wednesday. The department stated that all Corinthian students' federal debt would be wiped clean as an investigation has revealed that the now-defunct for-profit school chain, Corinthian Colleges, had deceived students.

Notably, this is the largest single loan forgiveness in the department's history. The total debt relief amount is around $5.8 billion.

The decision would cover all the Corinthian students who attended any campus of the school chain from 1995 to 2015.


The Corinthian College fraud was one of the most infamous fraud cases in US higher education. The department has said that Corinthian Colleges made false claims regarding its placement record and deceived students, including those who took loans to pay fees. Besides, the notorious institution also lied to students regarding the transfer of credits.

Miguel Cardona, the Secretary of Education, said that the Biden-Harris administration will provide debt relief to all the students defrauded and deceived by Corinthian Colleges, and they can "rest assured."

The department has stated that the process of loan discharges will begin in the next few months. Additionally, it clarified that the eligible students do not need to undergo any process, and the loan cancellation will be made automatically.

Corinthian Colleges was established in 1995, and it reached its peak in 2010. As per the data, Corinthian enrolled over 110,000 students at its 105 campuses during its peak phase. However, around 2015, its malicious and fraudulent activities surfaced, and Corinthian was closed in 2015.

Later, in 2016, Kamal Harris, the then-Attorney General of California, and the California state secured a $1-bn judgment in a case against Corinthian. The jury had upheld that Corinthian deceived students over job placement rates by false advertisement.
However, Corinthian College students expecting to hear the final decision in the next two weeks