The U.S. Department of Education will halt collections on student loans for roughly 40,000 former Corinthian students who are in default, Reuters reported. A group of former Corinthian students has asked a federal bankruptcy court judge to temporarily suspend debt payments for up to 350,000 students who attended the collapsed for-profit chain during the last five years. A lawyer for the group last week told Reuters that the department would not collect on defaulted loans for 120 days. During that time the lawyer said he hopes to negotiate debt relief for all former Corinthian students.
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