Nearly 4,700 NJ students’ federal student loans canceled
TRENTON – The cancellation of federal student loan obligations for students who attended Corinthian Colleges helps nearly 4,700 students from New Jersey, the state said Thursday.
Corinthian operated from 1995 through 2015, then closed suddenly amid scrutiny of its deceptive marketing and false statements to students and the government. The for-profit college chain particularly targeted low-income residents in its fraud.
Acting Attorney General Matthew Platkin said 4,660 New Jersey borrowers are receiving $48.8 million in full student loan cancellations, out of the roughly 560,000 borrowers receiving $5.8 billion in discharges nationwide.
“The Department of Education’s decision to discharge the loans of these students was righteous and just, and will enable these student borrowers to begin anew without having to shoulder unfair debt put on them by predators,” Platkin said.
Borrowers eligible for the loan relief do not have to take any action. The cancellation will be automatically applied to their student loan balances.
The Biden administration says it has approved $25 billion in loan relief since taking office. That loan relief has been targeted to public workers, people with disabilities and students from colleges who committed fraud.
A decision on more widespread student loan forgiveness, which President Joe Biden promised as a candidate in 2020, hasn’t been announced. Loan repayments paused at the start of the pandemic are due to restart in September.