Several other groups of student loan borrowers will also receive automatic aid unless they choose to opt out.
ITT also mischaracterized future job options and students ability to transfer credits.
Heres a closer look at whos receiving the automatic aid.
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Borrowers who went to college on Pell Grants may be eligible to receive $20,000 in forgiveness.
Pell Grants dont have to be repaid but are given based on financial need.
Theadministration also announced a final payment freezeuntil Dec. 31, 2022.
Eight million of those borrowers are likely to receive automatic forgiveness based on previously known income data.
The remaining will likely need to fill out an software available by the end of the year.
The $5.8 billion in total debt forgiveness was the largest single loan discharge in U.S. history.
Corinthian also effectively lied about students ability to transfer credits and its own public job placement rates.
The chain had more than 110,000 students at 105 campuses at its height in 2010.
But, after theDOE announced its initial findingsin 2015, Corinthian sold or closed all of its schools.
The DOE said more than 100,000 borrowers had their loans canceled because of the provision.
The department has also made it painless for affected borrowers to receive their loan forgiveness.
Borrowers will not have to take any actions to receive their discharges, according to a DOE release.
The agency discharged the loans at the end of the year.
TheDOE saidITT Tech widely and pervasively misrepresented students future job options and the ability to transfer credits.
ITT Tech is one of more than 50 defunct schools included in the Department of EducationsClosed School Dischargeprogram.
Other schools include The Chefs Academy, Concordia University, the group of Corinthian Colleges and dozens more.
This discharge program typically provides automatic loan forgiveness to qualifying borrowers three years after a schools closure.
This benefit should not be confused with loan discharge, aka forgiveness.
It affects only the interest on the loans.
Only a small percentage of qualifying service members have accessed the benefit.
In 2019 before the data-matching agreement, the department said it waived interest for only 4,800 service members.
As a result, the department can automatically provide the student loan interest benefit.
What Happens When the Education Department Doesnt Collect on Student Loan Debt?
Simultaneously, the department loses out on money it was owed.
Even the tailored relief provided by the department in 2021 accounts for $9.5 billion.
How does the department operate without those funds?
Could loan forgiveness affect the budgets of other aid programs?
What about everyone else with student loan debt?
The Department of Education did not respond when The Penny Hoarder posed those questions.
However, a recentBrookings reportby Adam Looney sheds some light.
Robert Bruce is a senior writer for The Penny Hoarder.
Former staff writer Adam Hardy contributed.
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