(NPR) – The U.S. Department of Education will forgive $5.8 billion of federal student loans for those who attended Corinthian Colleges, a chain of for-profit schools that deceived students about their job placement rates and students’ ability to transfer credits.
It is the single largest discharge of student loans in history, according to the department.
The move, which was announced Wednesday, will impact 560,000 borrowers, the Education Department said.
‘Wholesale financial exploitation’
In 2015, the Education Department found that Corinthian had “engaged in widespread and pervasive misrepresentations” about borrowers’ future job prospects, including promises they would find a job.
The Department also found that Corinthian had falsified its public job-placement rates and misled prospective students about their ability to transfer credits.
“For far too long, Corinthian engaged in the wholesale financial exploitation of students, misleading them into taking on more and more debt to pay for promises they would never keep,” Secretary of Education Miguel Cardona said.
Central to the case against Corinthian was California’s then-Attorney General, Kamala Harris, who sued the company in 2013, alleging it used deceptive and false advertising and recruitment tactics.