On Wednesday, June 1, 2022, the Biden Administration announced plans to cancel all outstanding student loans for students who have previously attended schools under the leadership of Corinthian Colleges.
Corinthian Colleges, formerly known as one of the largest for-profit education organizations, isn’t a stranger to accusations of predatory and unlawful practices.
Lawsuits faced by Corinthian colleges came from notable personnel and organizations such as the Consumer Financial Protection Bureau and Vice President Kamala Harris while serving as an attorney general of California.
Corinthian colleges were founded in 1995 and, by 2010, had enrolled over 100,000 students across its 100 campuses. The company, however, filed for Chapter 11 bankruptcy in 2015.
Amongst this population resides those identifying as student loan borrowers. Around 560,000 borrowers will be benefiting from this action plan for forgiveness, therefore amounting to $5.8 billion being relieved, an outstanding single debt forgiveness action made by the government in its history.
“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 U.S. Secretary of Education Miguel Cardona.
Senior administration officials noted that student borrowers still facing a loan balance should be issued a refund on previous payments paid towards their debt.
Higher education expert Mark Kantrowitz also weighed in on the matter by mentioning, “Many borrowers have been waiting for years and years for their applications to be processed.”
The administration also emphasized that the relief should be entirely automatic. Reassuring borrowers that there will be no need to navigate any paperwork or applications. Those who qualify are expected to be notified within the upcoming weeks.
The recent announcement follows as the White House continues to decide whether or not to move ahead with broad-based student loan forgiveness, where officials and administrators are leaning towards forgiving $10,000 for all borrowers earning below $150,000 annually. A financial burden that many borrowers live with amongst this economic crisis. The decision, however, is still pending.
How Can Chipper Help?
Chipper can help you find a student loan repayment plan that fits your budget. You simply fill out your information and link your student loan account for us to generate your options in seconds. We help the average student loan borrower save over $300 a month off their student loan monthly payment. Lowering your monthly payment plan can be game-changing for your personal finance and can be done in minutes! Sign up for Chipper today to get on track with your student loans.
Use Chipper Round-Ups For The Best Path To Forgiveness
As nationwide student loan borrowers are still awaiting the decision and relief,now is the time to put the financial practices in place that will benefit you in the long run. We make it easy with our Round-Ups feature – the simplest way to pay off your loans!
In addition to making sure you're on the right repayment plan and discovering whether or not you qualify for the government forgiveness program, when you sign up for Chipper+ and use the Round-Ups feature, the spare change from everyday purchases you already make goes directly towards your student loans. For example, if you spend $4.28 on your morning coffee, $0.72 would be rounded up to pay down your debt without having to lift a finger.
Round-Ups is free to use and the full amount of the round up goes towards your student loans. On top of that, we will automatically pause your round-ups if you have a debit card linked with insufficient funds. It’s our mission to empower student loan borrowers to get out of debt faster with transparent and accessible solutions like Round-Ups.
How To Start Using Round Ups:
- Visit Chipper.app and click "Get Started."
- Sign up for Chipper and create your FREE account
- Link your student loans
- Add your card(s)
- Spend as you usually would & and watch your balance go down as you chip away at your student debt
With Chipper, you can easily track your payment history and see how much is rounded up towards your student loans each week and skip or pause payments whenever you want.
