U.S. Has Forgiven Loans of More Than 3,000 Ex-Corinthian Students
More than 3,000 borrowers who attended closed Corinthian campuses have had their student loans forgiven by the U.S. Department of Education to date, at a cost of $40 million to taxpayers, according to a report released on Thursday by Joseph A. Smith, the “special master” overseeing the discharges. Thousands more are in line for debt relief. To date, almost 8,000 students who attended now-shuttered campuses of the defunct career-college system have applied to have their debts forgiven. And 4,140 students at Corinthian Colleges Inc. and other colleges have filed “borrower defense” claims seeking to have their debts discharged on the grounds that they had been defrauded by the institutions.