President Biden Cancels 5.8 Billion Dollars in Student Loan Debt
Last week, President Biden canceled student loan debt for 560,000 borrowers. However, this was not just for anyone. This cancellation went to a very specific group of people.
The group of people that were awarded this cancellation were students that attended a non-defunded network of for-profit schools known as Corinthian Colleges. The total amount erased for these students was about $5.8 billion. This is the largest singular loan discharge in the history of the Department of Education. Beyond that, some of these students that attended Corinthian Colleges received loan forgiveness through a separate program before now. The announcement from last week extended the eligibility for those that attended a Corinthian College back to its founding in 1995 and up to 2015.
The Department of Education says that the reason for these students receiving this forgiveness is because the for-profit colleges have been in hot water with the government for years. In the end, the Department found that the Corinthian Colleges had misled students.
This is another step in the President’s action plan to erase student loan debt. Since January of 2021, he has erased about $25 billion in student loans for those that are permanently disabled and those who are in the public sector. There have also been numerous reports for some time now that the President is considering some kind of student loan cancellation for all borrowers. While we could be seeing an announcement on that sometime shortly, nothing has been set in stone just yet. Latest reports show that the President is still working to determine how such an action could be carried out to understand if it is legally feasible.