The hundreds of thousands of students who attended the institutions of the now-defunct Corinthian Colleges Inc., are still on the hook to the federal government for billions of dollars in student loans. But a decision this week by a bankruptcy court could improve the chances that they won’t have to repay those loans, according to their lawyers.
That means the millions, or perhaps billions, lent to them by the government might never be repaid, although officials at the U.S. Department of Education said it was premature to speculate on how such legal actions might affect loan-relief requests.
The U.S. bankruptcy court in Delaware approved the Corinthian liquidation plan on Wednesday.
Read more at The Chronicle of Higher Education: http://chronicle.com/article/Corinthian-Ruling-Could-Mean/232693