Biden administration will cancel student debt for half a million students from Corinthian Colleges

Teachers line up to enter Everest College, one of the Corinthian Colleges that closed, for a meeting and opportunity to collect their personal items, in City of Industry, Calif., April 27, 2015.

The US Department of Education said on Wednesday that the Biden administration would cancel all outstanding student loans for those who attended Corinthian Colleges.

The schools have been accused of predatory and unlawful practices, and faced lawsuits from the Consumer Financial Protection Bureau as well as Vice President Kamala Harris when she was attorney general of California. The company filed for Chapter 11.

Around 560,000 borrowers will benefit from the debt cancellation. That is the largest debt forgiveness action taken by the government.

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.

Corinthian enrolls more than 100,000 students across 100 campuses.

25% of Americans are delaying retirement due to inflation, and bachelor's degrees from public colleges pay more than $100,000.

Senior administration officials said on Wednesday that former students of the colleges who still have a student loan balance should be given refunds for previous payments.

They said that the relief should be automatic, meaning that borrowers won't need to apply. The borrowers are expected to be notified soon.

Many borrowers have been waiting for years for their applications to be processed.

The Biden administration has approved loan forgiveness for over one million borrowers.

The White House is considering whether to move ahead with broad based student loan forgiveness. A spokesman for the administration said they haven't made a decision yet on wiping out $10,000 for borrowers who earn less than $150,000.