The U.S. Department of Education announced Thursday that it has granted the requests for debt forgiveness made by more than 1,300 federal student loan borrowers who attended Heald College, a subsidiary of the now-defunct for-profit Corinthian Colleges chain.
The debt relief, which totals $27.8 million, is the first time the Education Department has canceled a significant number of loans under a seldom-used provision of federal law that allows borrowers to seek loan forgiveness based on their college’s misconduct.
Amid the collapse of Corinthian Colleges earlier this year, the Education Department received thousands of claims for debt forgiveness. The department said Thursday that it has not yet reached any decisions about 5,379 outstanding claims.
Read more at Inside Higher Ed: https://www.insidehighered.com/quicktakes/2015/12/04/debt-relief-some-former-corinthian-students