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By Alicia Adamczyk
March 25, 2016
Former Corinthian Colleges student Ruby Maldanado, 20,  being notified of the closure of the for-profit school in April 2015.
Former Corinthian Colleges student Ruby Maldanado, 20, being notified of the closure of the for-profit school in April 2015.
Al Seib—LA Times via Getty Images

At last, there’s a silver lining for former students of the now defunct Corinthian Colleges: On Friday, the U.S. Department of Education said Friday it will create a way for the students at 91 different Corinthian campuses to get their student loan debt forgiven. The scandal-ridden for-profit educational institution has been embroiled in lawsuits over misleading job placement rates and lending practices.

This comes a day after a judge slapped the for-profit school with a $1.1 billion penalty for lying students. As my colleague Kerry Close reported,

And while over $800 of the billion-plus settlement is supposed to go to students, it is unlikely that they’ll receive even a penny—Corinthian filed for bankruptcy in May and is heavily in debt. Luckily, today’s announcement from the Department of Education will give the students some relief.

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“When Americans invest their time, money and effort to gain new skills, they have a right to expect they’ll get an education that leads to a better life for them and their families. Corinthian was more worried about profits than about students’ lives,” U.S. Education Secretary John B. King Jr. said in a statement.

According to the same statement, the Department has already approved loan forgiveness of more than $130 million for almost 9,000 former Corinthian students.

So far, students from 91 campuses in 20 states are eligible for forgiveness. For more information or to see if you are eligible for debt relief, visit the Department of Education’s website.

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Our mission is to help people at any stage of life make smart financial decisions through research, reporting, reviews, recommendations, and tools.

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Our content is free because our partners pay us a referral fee if you click on links or call any of the phone numbers on our site. If you choose to interact with the content on our site, we will likely receive compensation. If you don't, we will not be compensated. Ultimately the choice is yours.

Opinions are our own and our editors and staff writers are instructed to maintain editorial integrity, but compensation along with in-depth research will determine where, how, and in what order they appear on the page.

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