Chairman Scott Applauds Biden Administration for Delivering Full Debt Relief to All Students Defrauded by Corinthian Colleges
WASHINGTON – Today, the Biden-Harris Administration announced it will deliver $5.8 billion in debt relief to roughly 560,000 student borrowers, clearing borrower defense claims for those who attended the now defunct Corinthian Colleges, Inc. dating back to 1995. Today’s actions build on efforts to restore access to debt relief for students who were defrauded by predatory colleges. To date, the administration has approved $25 billion in loan forgiveness for more than 1.3 million borrowers.
“I applaud Biden-Harris Administration for finally clearing a cloud of uncertainty for defrauded student borrowers who attended the now defunct Corinthian Colleges, Inc. Hundreds of thousands of students were promised that a Corinthian degree would lead to a meaningful career. However, when Corinthian failed to deliver on its promise, students were left with burdensome debt and useless degrees. This relief is long overdue, yet the previous Administration refused to grant borrowers the relief to which they were legally entitled.
“To add insult to injury, the previous Administration’s formula for determining debt relief was deeply flawed both in its use of statistics and the unfair outcomes it produced for borrowers. Under that old, flawed formula, some defrauded borrowers would be granted relief only if they made ‘negative earnings’ — which, of course, is impossible.
“No institution should put its bottom line ahead of its students. As Chairman, I have pushed hard to ensure these borrowers received the relief they deserved, and I will continue to conduct strong oversight to protect future student borrowers and their families from predatory institutions.”
To read the Committee’s report on Borrower Defense under the Trump Administration, click here.
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