As reported by the Orange County Register:
The abrupt closure of Corinthian Colleges may cost U.S. taxpayers more than $200 million in canceled student loans.
Corinthian, the for-profit chain based in Santa Ana, reached an agreement Sunday with the Education Department to shutter its 28 campuses serving about 16,000 students. Forgiving their debt, if all students request it, would cost the government about $214 million, according to Denise Horn, an Education Department spokeswoman.
When a college closes, enrolled students are eligible to have their federal loans discharged, under certain circumstances. Some Corinthian students who are able to finish their degrees by transferring into other programs may not qualify to have their loans canceled, said Daniel Hanson, an analyst with Height Securities in Washington.
