Mr. Duncan also said the department planned to develop a process to allow any student — whether from Corinthian or elsewhere — to be forgiven their loans if they had been defrauded by their colleges.
A special master would be appointed within three weeks, department officials said, to create procedures to apply for relief that are “durable, not just for Corinthian but beyond.”
Taxpayers could pay a huge price for forgiving so many federal loans; the government has never before opened debt relief to such a potentially large pool of students. The department estimated that if all 350,000 Corinthian students over the last five years applied for and received the debt relief, that cost alone could be as much as $3.5 billion.
via Government to Forgive Student Loans at Corinthian Colleges – NYTimes.com.
QUINNSCOMMENTARY 
I once bought a Chevy Citation and at a different time, a Chevy Vega. Both were lemons. Do you think I missed my opportunity to get my money back when the government moved in to take over GM?
What’s next? Home purchases maybe. Almost all home loans are underwritten by Fanny Mae and Freddie Mac today. So, if you overpaid for a home where there is a government-underwritten mortgage, and you are underwater, are the taxpayers (not the “government”) supposed to bail you out?
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