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.