Corinthian College students, including 3,320 in Wisconsin, lose debt

More than 3,300 Wisconsin borrowers who attended Corinthian Colleges, a chain of for-profit schools that cheated students on placement rates, will have their debt forgiven.

In what is described as the largest student debt discharge by the U.S. Department of Education, the federal agency is canceling $5.8 billion borrowed by students who attended a Corinthian-owned or operated campus from 1995 to its closure in 2015. The decision announced this week helps 560,000 borrowers nationwide, including 3,320 in Wisconsin, who will receive $36.2 million in full loan discharge.

Wisconsin Attorney General Josh Kaul.

“Corinthian’s predatory practices have unfairly left people across the country with substantial debt, and this action is long overdue,” Attorney General Josh Kaul said in a statement.

Debt forgiveness will be automatic, which means former Corinthian students will not have to apply for cancellation of their debts.

More than 110,000 students enrolled at 105 campuses across the United States at Corinthian’s peak in 2010. The for-profit company briefly operated a Milwaukee campus called Everest College that year and boasted a national rate placement of 80% to 90% to prospective students.

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