• Aaron Meaders

Biden Student Loan Cancellation: What You Need To Know

Updated: Jul 14


As the Biden administration plans to cancel all outstanding student loans for those who attended schools operated by Corinthian Colleges, this guide will provide information on how to qualify for and receive student loan cancellation. Those who have been deceived, defrauded, or driven into debt by Corinthian Colleges can rest assured that the process of canceling their student loans will be automatic, and they should receive notification within weeks. This guide will outline what steps need to be taken to qualify for student loan cancellation and what to expect in terms of refunds and payments. By following this guide, those affected by the Corinthian Colleges scandal can begin putting their debt behind them.


 

What Are Corinthian Colleges?


Corinthian Colleges was a for-profit education company that operated 100 campuses across the United States. The company filed for bankruptcy in 2015 after facing lawsuits from the Consumer Financial Protection Bureau and Vice President Kamala Harris when she was attorney general of California. Around 560,000 borrowers benefit from the debt cancellation, which will come out to approximately $5.8 billion. That’s the most extensive single debt forgiveness action taken by the government.


 

What Is Student Loan Cancellation?


The Biden administration plans to cancel all outstanding student loans for those who attended Corinthian colleges' schools. This means that borrowers will no longer be responsible for paying back their student loans. Qualifying borrowers are expected to be notified within weeks.


 

What Are the Qualifications for Student Loan Cancellation?


To qualify for student loan cancellation, you must have attended a school operated by Corinthian Colleges. You must also still have a student loan balance.


 

What Is the Process for Student Loan Cancellation?


The process for student loan cancellation is automatic, meaning that borrowers do not need to navigate any paperwork or apply. Those who qualify will be notified within weeks.


 

What Happens After My Student Loans Are Canceled?


After your student loans are canceled, you will be refunded for any payments that you have made on your debt. The relief should be automatic, and you will no longer be responsible for paying back your student loans.


 

What if I Have Already Paid Off My Student Loans?


If you have already paid off your student loans, you will be refunded for your paid amount.


 

What if I Am Currently in Default on My Student Loans?


If you are currently default on your student loans, the debt will be forgiven, and you will no longer owe anything.


 

What if I Have Private Student Loans?


Private student loans are not eligible for cancellation under this plan.


 

When Will I Receive Notification That My Student Loans Have Been Canceled?


Qualifying borrowers are expected to be notified within weeks. You should receive a notice in the mail or an email from your loan servicer.


 

What if I Have Questions About My Student Loan Cancellation?


If you have questions about your student loan cancellation, you can contact the Department of Education at 1-800-4-FED-AID. You can also visit StudentAid.gov for more information.


 

Final Thoughts

The process for student loan cancellation is automatic, meaning that borrowers do not need to navigate any paperwork or apply. Those who qualify will be notified within weeks. By following this guide, those affected by the Corinthian Colleges scandal can begin putting their debt behind them.

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