Obama Administration officials then complained the college wasn’t producing documents fast enough, and the Education Department cut off federal student aid. This drove Corinthian into bankruptcy and stranded tens of thousands of Corinthian students.
The Obama Administration then agreed to forgive $171 million in government loans for Corinthian students still in school. In 2016 a state judge handed Attorney General Harris a default judgment against Corinthian, which she flogged during her campaign for U.S. Senate. What a clever legal strategy: Bankrupt a company so it can’t defend itself.
But progressives, never satisfied, have demanded that the feds cancel the debt of every borrower who attended Corinthian since its founding in 1995. The Trump Administration refused this as a horrendous precedent that would let students off the hook for repaying loans if their college is accused of fraud.
The Biden Administration has no such qualms. On Wednesday the Education Department announced it would forgive $5.8 billion in debt for 560,000 former Corinthian students. “The action is the largest single loan discharge the Department has made in history,” the Department boasted, crediting Ms. Harris, who took a victory lap on Thursday at a press conference.