WASHINGTON (AP) — The government is erasing the loan debt of more than 7,000 former students of the now-defunct Corinthian Colleges — totaling over $100 million. But that represents a tiny fraction of a federal debt-forgiveness program that could run well into the billions of dollars.
The Education Department says it has approved a second wave of Corinthian loan forgiveness, this one for students who filed “borrower’s defense” claims alleging they were lied to or misled by the company.
The relief covers 1,300 former students from Corinthian’s Heald College, totaling about $28 million.
Another 5,800 former Corinthian students who filed “closed school” claims will see their debt discharged, totaling $75 million.
Corinthian was once one of the largest chains of for-profit colleges but filed for bankruptcy protection this year amid fraud allegations.
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