WASHINGTON — A top education official says the 16,000 former Corinthian Colleges students who saw their campuses abruptly close will automatically have their federal student loans discharged. But that’s only if they agree to forgo any credits they earned.
Undersecretary Ted Mitchell says the department is bound by statute and regulation on how it handles such a case when a school closes.
Corinthian is a large chain of for-profit colleges that shuttered its 28 remaining ground campuses this week. That came less than two weeks after the department announced it was fining it $30 million for misrepresentation.
The closures left students at campuses in California and elsewhere struggling to decide whether to seek to have the credits they’ve already earned transferred to another school or to try to have their loans forgiven.