Obama Administration Forgives $171 Million in Student Debt

News from Jerome E. Horton (Member California State Board of Equalization, 3rd District)

Following California Attorney General Kamala D. Harris’ successful lawsuit against the now-defunct Corinthian Colleges, the Obama administration recently announced plans to forgive $171 million in federal loans for students who attended Corinthian Colleges. The judge ruled that the company’s advertising practices misled students and violated the law by providing untrue or misleading statements about graduates’ job placement rates, duping both students and investors, and unlawfully using U.S. military seals in advertisements.

More than 11,000 Corinthian students have had student loans forgiven and over 300,000 additional students are being sought by the Department of Education so that their loans may be forgiven.