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Arizonans could see millions in student loan debt erased in now-defunct Corinthian College loan scheme

File image: Student loan debt forgiveness
U.S. Department of Education/courtesy photo

More than 10,000 Arizonans could see millions of dollars in federal student loan debt erased as part of a multi-billion-dollar loan discharge announced last week for former students of the now-defunct Corinthian Colleges.

Cronkite News Digest reports it’s the largest such action by the U.S. Department of Education and could affect 560,000 students.

Corinthian owned Everest, Heald and Wyotech colleges. The students claim they were duped into taking excessive loans by the colleges, based on bogus claims of job placement rates for their graduates, in a scheme that targeted minority and low-income students.

Student advocates said there are still many problems the government needs to address with for-profit colleges, but that they were pleased with last Thursday's announcement.

The amount of loans debt erased could amount to nearly $112 million.