Biden announces unprecedented student loan forgiveness package

In an unprecedented move that could be a sign of what’s to come, President Joe Biden’s administration announced this week it would be cancelling the debt of 560,000 borrowers who attended a number of for-profit colleges.

According to Fox News, former students of the Corinthian Colleges chain would receive $5.8 billion in full loan discharges.

The package represents the largest loan discharge in Department of Education history.

“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,” said Education Secretary Miguel Cardona said.

“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.”

Students who have already paid off their loans will not be eligible.

Corinthian Colleges, once one of the nation’s largest for-profit higher education firms, collapsed in 2015.

The chain’s failure came amid claims of fraud.

“Hundreds of students told investigators they were pressured to enroll with promises of lucrative employment, only to end up with huge sums of debt and few job prospects,” Fox News reported.

“Federal officials also found that the company falsely told students their course credits could be transferred to other colleges.”

The chain supposedly reported students found jobs in their chosen field when they were working jobs at supermarkets or fast-food restaurants.

However, thousands of students who were attended were already eligible to have their student debt canceled if they had been deceived.

As Fox News reported, “they had to file paperwork and navigate an application process that advocates say is confusing and not widely known.”

The move comes as the Biden administration remains under pressure to cancel up to $50,000 in federal student loan debt per student by congressional Democratic leadership.

The latest plan from the White House would reportedly cancel a more modest sum — up to $10,000 per student, according to a Washington Post report last week.

Biden had reportedly planned to make the announcement during commencement at the University of Delaware last weekend. Plans changed, however, after the shooting in Uvalde, Texas.