The new announcement by the Biden-Harris administration brings the total student loan debt cancellation approved under the Biden administration to $25 billion since January 2021, according to CNN.
The Biden administration has announced that it will cancel $5.8 billion in student debt for people who attended certain for-profit colleges, CBS News reported.
The announcement came Wednesday and will effect hundreds of thousands of students who attended the for-profit Corinthian Colleges chain, CBS News reported.
The student will automatically get their federal student loans canceled, the Biden administration announced.
"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," Education Secretary Miguel Cardona said in a statement. "For far too long, Corinthian engaged in the wholesale financial exploitation of students, misleading them into taking on more and more debt to pay for promises they would never keep."
The debt cancellation should be automatic, the administration said. No paperwork or applications for relief are needed and qualifying borrowers are expected to be notified within weeks.
Corinthian Colleges has 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, according to NBC News. The company filed for Chapter 11 bankruptcy in 2015.
The new announcement by the Biden-Harris administration brings the total student loan debt cancellation approved under the Biden administration to $25 billion since January 2021, according to CNN.
