U.S. to Forgive Corinthian Student Debt

The U.S. Department of Education said Monday it will forgive the remaining debt for students who attended Corinthian Colleges before the for-profit education company shuttered last month. The department fined Corinthian $30 million for overstating job-placement rates for graduates, prompting the company to shut down its remaining campuses and file for bankruptcy. Department officials said they would create a process to forgive loans for students whose schools have closed down or believe they were victims of fraud, regardless of whether they attended a Corinthian school. “We will make this process as easy as possible for them, including by considering claims in groups wherever possible, and hold institutions accountable,” said Education Secretary Arne Duncan. The department estimates if all eligible students take advantage, the total could reach as much as $3.5 billion.