[ad_1]
More than a million student loan borrowers are entitled to automatic relief thanks to recent court settlements and rule changes from the US Department of Education.
Several groups of student loan borrowers will receive automatic aid unless they choose to opt out. The groups include some current and former service members, borrowers with qualifying permanent disabilities that prevent them from working and attendees of the defunct ITT Tech who inadvertently took out “misleading” The loans that the for-profit college chain allegedly disguised as grant money.
The group also includes more than half a million defrauded former students who took out loans to attend the Corinthian chain of schools — as well as some 66,000 borrowers who will get automatic loan forgiveness from a settlement reached in early 2022 with the loan servicing company Navient.
Here’s a closer look at who’s receiving the automatic aid.
560,000 Borrowers Who Attended Corinthian Schools
In early June 2022, the Department of Education announced they would be offering complete student loan forgiveness to 560,000 former Corinthian students. The $5.8 billion in total debt forgiveness was the largest single loan discharge in US history.
Corinthian, a for-profit chain of schools under the names of Heald, Everest and WyoTech, made “pervasive misrepresentations related to a borrower’s employment prospects, including guarantees they would find a job,” according to the DOE. Corinthian also effectively lied about students ‘ ability to transfer credits and its own public job placement rates.
The chain had more than 110,000 students at 105 campuses at its height in 2010. But, after the DOE announced its initial findings in 2015, Corinthian sold or closed all of its schools.
Those initial findings gave borrowers the opportunity to apply for “borrower defense,” a provision that allowed defrauded students to receive loan cancellation. The DOE said more than 100,000 borrowers…
[ad_2]
Source link
