The Biden administration on Wednesday declared the biggest student financial loan forgiveness phase by the Schooling Section with the cancellation of $5.8 billion in federal pupil financial loans for hundreds of thousands of pupils who attended universities affiliated with Corinthian Colleges.

The motion will erase credit card debt for about 560,000 borrowers who enrolled in the for-gain Everest, Heald and WyoTech faculties, which Corinthian owned or operated in advance of it folded in 2015 subsequent an investigation by the Instruction Division.

Debtors do not have to have to acquire any action to have their loans forgiven, the company reported.

In a news release Wednesday, the Education and learning Office claimed it is “also functioning on new rules that will forever boost a wide range of the current college student personal loan relief plans, considerably reduce monthly payments, and offer increased protections for pupils and taxpayers in opposition to unaffordable debts.”

An investigation the Education Division led in 2014 found that Corinthian Faculties misled pupils by inflating its career-placement prices. The organization, which after operated 105 campuses in 25 states, effectively collapsed in 2015 and was forced to close or sell its campuses just after the Education Department began withholding federal financial loan funds.

“For much way too long, Corinthian engaged in the wholesale economical exploitation of pupils, misleading them into having on additional and additional personal debt to spend for claims they would hardly ever hold,” Training Secretary Miguel Cardona said in a assertion Wednesday.

“Even though our steps right now will reduce Corinthian Colleges’ victims of their burdens, the Office of Education and learning is actively ramping up oversight to superior defend today’s pupils from practices and make certain that for-gain institutions — and the firms that personal them — never again get absent with these abuse,” he included.

The Biden administration has taken other techniques to erase credit card debt for specified borrowers, but no selection has been created about broader debt cancellation. President Joe Biden reported in late April he was weighing university student bank loan forgiveness but not thinking of canceling $50,000 for every borrower. On the marketing campaign trail, Biden explained he favored an quantity nearer to $10,000.