The Cost of Forgiving Student Loans

The federal government has decided to forgive the student loans of those who attended the now-defunct Corinthian College, which recently closed down in the wake of accusations of fraud. What's the potential cost for such relief? A staggering sum:

Taxpayers could pay a huge price for forgiving so many federal loans; the government has never before opened debt relief to such a potentially large pool of students. The department estimated that if all 350,000 Corinthian students over the last five years applied for and received the debt relief, that cost alone could be as much as $3.5 billion.

What happened at Corinthian? Read on to find out. 

Comments are automatically closed two weeks after an article's initial publication. See our comments policy for more.
J Cosgrove
2 years 9 months ago
There is something missing here. Who made the loans? They should be in this somehow. If Corinthian was such a bogus education operation, why were funds made available to the students? These may be the real culprits.


Don't miss the best from America

Sign up for our Newsletter to get the Jesuit perspective on news, faith and culture.

The latest from america

The U.N. report documents cases of extrajudicial murders committed by police, illegal house raids and threats and harassment against journalists and social and political activists in Honduras.
Jackie McVicarMarch 20, 2018
An employee wrapped in a blanket talks to a police officer after she was evacuated at a FedEx distribution center where a package exploded on March 20, 2018, in Schertz, Texas. (AP Photo/Eric Gay)
In their joint statement, the Texas bishops echoed Chief Manley’s appeal to the community. “We ask all people in our dioceses to remain vigilant, and to pray and work for peace,” the bishops said.
Paul StinsonMarch 20, 2018
The challenge of finding families for homeless youth and for those in group shelters is creating the latest flashpoint over competing civil rights claims. (iStock/bodnarchuk)
Catholic Social Services refuses to place foster children in homes headed by same-sex couples; the city of Philadelphia says this policy violates a nondiscrimination law.
My approach to the mystery of A.L.S. is a bit different than that of the famed physicist.
Elise ItalianoMarch 20, 2018