Corinthian Colleges

More than a half-a-million people who attended Corinthian Colleges will have their debt erased. It's the most debt the federal government has cancelled.

"I am happy at the end of the day that our loans are being discharged, but the battle is not over," Suggs said. That group had also led a "student debt strike" in 2015 made up of former students from Corinthian College who said their degrees were fraudulent. The cancellation comes via the borrower defense program, a federal initiative that cancels the debt of students who can prove they were defrauded by their schools. "This action is long overdue, but we hope it provides these borrowers with a fresh start and an opportunity to chart a path towards a brighter, more secure financial future," said Libby DeBlasio Webster, senior counsel for the National Student Legal Defense Network, a borrower's advocate group. That pause is set to lift at the end of August. The original complaint against the school alleged it targeted poor Californians via ads and marketing campaigns that misrepresented the likelihood of students finding jobs.

Today, the U.S. Department of Education (Department) announced it will discharge all remaining federal student loans borrowed to attend any campus owned or ...

The Department would like to thank the Consumer Financial Protection Bureau, as well as the Offices of the Attorney General in California, Illinois, Massachusetts, Wisconsin, and 15 others who shared information that informed the Department's findings. Those were the basis of the first borrower defense approvals against Corinthian. It also led the Department to find that the company misrepresented to borrowers who attended its Everest, Heald College, or WyoTech campuses about their ability to find a job using their Corinthian degree. In 2013, Vice President Kamala Harris sued Corinthian when she was attorney general of California, alleging that the company intentionally misrepresented to its students about job placement rates and was engaging in deceptive and false advertising and recruitment. While our actions today will relieve Corinthian Colleges' victims of their burdens, the Department of Education is actively ramping up oversight to better protect today's students from tactics and make sure that for-profit institutions – and the corporations that own them – never again get away with such abuse." The announcement today builds upon conclusions first reached by the Department of Education in 2015 that Corinthian engaged in widespread and pervasive misrepresentations related to a borrower's employment prospects, including guarantees they would find a job. The action is the largest single loan discharge the Department has made in history.

Nearly a decade after the collapse of Corinthian Colleges, former students of the defunct for-profit chain are set to have all of their federal student ...

“It was these students who started to remake the world,” Gokey said of the Corinthian 15. Harris’s investigation into Corinthian served as the basis for the department canceling the loans of former students in California and Florida. With Wednesday’s announcement, the Biden administration has now approved $25 billion in loan forgiveness to 1.3 million borrowers. The group asserted that a little-known statute called “borrower defense to repayment” gave the agency broad authority to cancel federal student loans when colleges violate students’ rights and state law. Corinthian was once a giant in the for-profit sector, enrolling more than 110,000 students at 105 campuses at its peak in 2010. “For far too long, Corinthian engaged in the wholesale financial exploitation of students, misleading them into taking on more and more debt to pay for promises they would never keep.”

The Biden administration plans to forgive loans for 560000 former students of Corinthian Colleges, a group of for-profit schools that Harris helped put out ...

The announcement comes as the administration deliberates whether to grant wider student loan relief affecting 43.4 million Americans who owe a combined $1.6 trillion in federal student loan debt. The Corinthian students represent only a fraction of that population. Liberal and youth activists have been pushing the administration for universal debt relief, or something close to it, with the federal government picking up the tab. Here’s what they’re doing and how to figure it out. The debt forgiveness would not apply to private loans. The administration said it’s the largest single loan discharge made by the department in its history.

The Biden administration is planning to administer widespread relief for former Corinthian Colleges students on Thursday, multiple sources told The Hill ...

Several sources told The Hill in late April that Biden was looking to cancel at least $10,000 per borrower, the amount the president had supported canceling in the 2020 campaign although progressives have called for $50,000 per borrower. We invite you to join the discussion on Facebook and Twitter. Since then,advocates like Sen. Elizabeth Warren (D-Mass.) have called on the Education Department to provide relief to former students who faced some form of debt collection. The White House has indicated that it is nearing a decision on student loan debt forgiveness, zeroing in on canceling $10,000 per borrower, but has not said that a decision is finalized. A second source who is aware of the forthcoming action but not authorized to speak on the record said advocates plan to use the declaration to “build momentum” for larger-scale student debt cancellation and to promote the role grassroots politics is playing to generate results during Biden’s first term in office. The Biden administration is planning to administer widespread relief for former Corinthian Colleges students on Thursday, multiple sources told The Hill exclusively, a move that progressives see as inching towards their goal of broader student loan debt forgiveness.

The U.S. Department of Education on Wednesday said it will cancel all remaining federal student loans used to attend any campus of for-profit Corinthian ...

Officials said they continued to study broader student debt relief options. Borrowers who have not paid off their debt will receive refunds of past loan payments, officials said. Register now for FREE unlimited access to Reuters.com

Today the Department of Education (ED) announced it is forgiving student loans for former Corinthian College students, bringing relief to 560000 thousand ...

This latest decision will give hope to other students defrauded by predatory for-profit institutions, hopefully signaling that more group loan discharges are coming to help the students who were financially harmed. For far too long, Corinthian engaged in the wholesale financial exploitation of students, misleading them into taking on more and more debt to pay for promises they would never keep. ED has now approved more than $25 billion in loan discharges for more than 1.3 million borrowers. It also misrepresented the accreditation of its programs and actively misled students and loan agencies about the prospects of graduates finding jobs. Last month, this same process was used for a smaller group discharge for former students of Marinello Beauty School. Today the Department of Education (ED) announced it is forgiving student loans for former Corinthian College students, bringing relief to 560,000 thousand borrowers who attended the now-closed chain of for-profit colleges.

The largest-ever loan forgiveness action by the Education Department will affect about 560,000 borrowers. Image: Corinthian Colleges To Liquidate.

President Joe Biden said in late April he was weighing student loan forgiveness but not considering canceling $50,000 per borrower. An investigation the Education Department led in 2014 found that Corinthian Colleges misled students by inflating its job-placement rates. The Biden administration has taken other steps to erase debt for certain borrowers, but no decision has been made about broader debt cancellation.

Students affected do not have to take any further action to secure their funds, and the Department of Education will begin notifying those students soon, ...

Several other investigations by regulators and the federal Education Department followed. In 2016, Harris and the state of California won a judgment of $1.1 billion in their case, including $820 million in restitution on behalf of the students and $35o million in civil penalties. The U.S. Department of Education will forgive $5.8 billion of student loans for those who attended Corinthian colleges, a chain of for-profit schools that deceived students about their job placement rates and students' ability to transfer credits.

The now closed education provider has been accused of predatory practices and filed for bankruptcy in 2015.

Two were located in California and one each in Pennsylvania, Florida and Wyoming. Corinthian Colleges also ran WyoTech, which focused on training for technical occupations in areas such as plumbing, the automotive sector and the aircraft sector. It had faced a lawsuit from the Consumer Financial Protection Bureau and Vice President Kamala Harris also pursued the company when she was attorney general of California.

Students wait outside Everest College in Industry, Calif., hoping to get their transcriptions and information on loan forgiveness and transferring credits to ...

But officially, the White House insisted late last week that "no decisions have been made yet." And it's the right thing to do. "It's a tremendous victory," says Eileen Connor, who directs the Project on Predatory Student Lending. "It is going to improve the lives of so many people. It's going to end suffering for so many people. The Education Department has also made it easier for borrowers to shed their debts through the Public Service Loan Forgiveness program and a separate loan discharge program for borrowers with permanent disabilities – both had been the subjects of NPR investigations. The U.S. Department of Education will forgive $5.8 billion of federal student loans for those who attended Corinthian Colleges, a chain of for-profit schools that deceived students about their job placement rates and students' ability to transfer credits.