Thousands whose colleges closed to have loans forgiven

WASHINGTON — The Trump administration plans to forgive $150 million in federal student loans tied to colleges that closed in recent years, following a court order enforcing an Obama-era policy the administration had sought to dismantle.

The Education Department has identified about 15,000 people who are eligible for automatic debt cancellation after borrowing money to enroll or help their children attend colleges that shut down on or after Nov. 1, 2013. Eligible borrowers are not required to take any action; the Education Department began notifying them Friday by email.

According to the Education Department, nearly half of the people identified received loans to attend defunct for-profit chain Corinthian Colleges, while the remainder were enrolled in schools that closed between Nov. 1, 2013, and Dec. 4, 2018.