Fortune reports the government is forgiving thousands of student loan debts for those who attended Corinthian College campuses:
In April, the department informed Corinthian that it was being fined about $30 million for fraud. After the news, Corinthian – once one of the nation’s largest for-profit chains – announced it would close down its remaining 28 campuses, displacing roughly 16,000 students. In May, Corinthian and its 24 subsidiaries filed for bankruptcy.
Overall, the Obama administration is coming down hard on for-profit education providers, where companies like Corinthian have often been accused of predatory lending and strong-arming its former students into paying back private loans. According to The Institute for College Access and Success, the average for-profit school student took on $39,950 in education loans, compared to their public and private university counterparts, who took out $25,550 and $32,300 on average, respectively.