The Biden administration is offering a new round of student loan debt relief to more than half a million borrowers who were students at Corinthian colleges.
The action will result in $5.8 billion in total loan releases for 560,000 borrowers, marking the largest loan release in Department of Education history, and brings total student debt relief granted by administration to $25 billion.
BIDEN’S STUDENT DEBT CANCELLATION PLAN INTENDED TO REMOVE LIBERAL VOTERS
Corinthian operated from 1995 to 2015. In 2013, then-California Attorney General Kamala Harris sued Corinthian before conducting a full investigation, which uncovered “comprehensive” wrongdoing against students across the country, including lying to potential students about graduation and placement. rates.
By Wednesday, the administration had extended debt relief to more than 1.3 million borrowers through the Civil Service Loan Forgiveness Program, borrower advocacy initiatives, furloughs permanent disability and other measures to help students defrauded by schools. The Department of Education confirmed Wednesday that every student who has ever attended a Corinthian school has been the victim of fraud and anyone with remaining federal loans is eligible for borrower defense. About 100,000 Corinthian borrowers have been approved for borrower defense relief.
“Starting today, every student deceived, defrauded and indebted by Corinthian colleges can be assured that the Biden-Harris administration has their back and will cancel their federal student loans,” Education Secretary Miguel Cardona said. in a press release. For too long, Corinthian has engaged in the large-scale financial exploitation of students, driving them into deeper and deeper debt to pay for promises they would never keep. While our actions today will relieve the victims of Corinthian colleges of their burden, the Department of Education is actively stepping up oversight to better protect today’s students from the tactics and ensure that institutions at profit – and the corporations that own them – never get away with it again. with such abuses.”
The announcement comes as President Joe Biden is reportedly considering forgiving an additional $10,000 in student loan debt for all borrowers earning less than $150,000 a year or co-filers earning less than $300,000.
Still, Biden faces major pressure from liberal activists and lawmakers to get him into debt quickly both to deliver on one of his key campaign promises and to build momentum for Democrats in November. Several politicians, including Senate Majority Leader Chuck Schumer (D-NY) and Sen. Elizabeth Warren (D-MA), have called on Biden to write off even more debt.
Some party officials have reported to the Washington Examiner that they believe student debt presents an opportunity for the president to make progress with voters on “advancing gender and racial equity” when considering that black borrowers on average complete their bachelor’s degree with nearly $5,000 more in debt than white borrowers, with the disparity between black and white female borrowers being even greater.
“It’s a major problem facing young Americans, but it’s also obviously a huge potential win for President Biden after [Sen. Joe] Manchin (D-WV) blocked him from addressing voting rights,” an official said. “The party needs black voters to run at 2020 levels to retain majorities in Congress, which will be critical to advance the president’s economic agenda. Two birds, one stone.”
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Fiscal conservatives, however, predict that Biden’s loan relief could exacerbate already historic inflation, and elected Republicans have said the move should be seen as an outright bribe as governments approach. midterm elections.