Corinthian Colleges, a for-profit education chain that once operated over 100 campuses across North America, filed for bankruptcy last year amid a torrent of lawsuits alleging that many of the company’s programs were a sham.
Corinthian’s collapse left thousands of students in the lurch and on the hook for thousands of dollars of debt, prompting the Obama Administration to review its write-down policies in cases of fraud and abuse. In the months since, over 78,000 Corinthian students and an additional 4,000 students from other trade schools have requested debt relief.
The Education Department said today that is has already approved more than 15,000 claims, together worth $247 million. All told, student-friendly changes in policy could cost taxpayers as much as $21.2 billion over the next 10 years.