The Biden administration just canceled $5.8 billion in student loans—and more borrowers could see relief soon

In the largest single loan forgiveness action taken by the government to date, the U.S. Department of Education canceled about $5.8 billion in outstanding student loans.

Corinthian Colleges, one of the largest for-profit education companies, filed for Chapter 11 bankruptcy in 2015.

According to the department, Corinthian Colleges has faced several lawsuits since it was founded in 1995 but perhaps the most notable is from the year of the vice president's lawsuit.

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.

The relief will be automatic and the borrowers will be notified within weeks, according to the department.

The Biden administration has approved $25 billion in loan forgiveness for more than one million borrowers.

While politicians and economists hailed the move as a step in the right direction, millions of borrowers have yet to see relief and are wondering when, and if, their loans will be forgiven.

Student loan forgiveness will happen in the coming months.

The administration has yet to confirm the cancellation of $10,000 for borrowers who earn less than $150,000 per year, according to CNBC.

According to a senior education policy leader at Third Way, the payment pause will be extended through the end of the year.

Voters might be less likely to vote if the Biden administration fails to provide adequate relief to borrowers, according to a recent survey.

Biden officials have made it clear that they are willing to extend the pause during interviews. Cardona told Cox Media Group in April that they would keep an eye on it. As has been the case in the past, we have August 31 as our date right now.

Dimino believes that more defrauded borrowers will see their debt canceled or reduced soon, especially those with pending borrower defense claims or who qualify for a closed school loan discharge.

Dimino says that the administration should continue to help borrowers who are struggling the most and give targeted relief. The Department of Education is trying to get through a large amount of defrauded borrowers so they can get relief.

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