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Corinthian Colleges Student Loans Will Be Forgiven, Education Dept. Says



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They also uncovered an obscure clause in the law governing the loans: If borrowers were significantly misled by their school, they could ask the government to forgive their loans. Just as a bank appraises a house before it issues a mortgage, the Education Department is supposed to ensure that the programs it lets taxpayer-backed loans pay for are legitimate.The Corinthian 15, backed by the Debt Collective, enlisted hundreds of students to flood the department with applications for loan relief through a program that became known as “borrower defense to repayment.” Tens of thousands of former Corinthian students eventually joined the action. In 2015, Arne Duncan, the education secretary at the time, announced that the government would wipe out their loans.But the process dragged on, and by the time President Barack Obama left office, relatively few of the debts had been discharged. Bet …

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