State and federal officials on Tuesday announced expanded debt relief for thousands of former students of Corinthian Colleges, the defunct operator of several for-profit schools including Heald College, which had a campus in Fresno.
The U.S. Department of Education analyzed job placement rates from Corinthian Colleges, and found the rates were widely misrepresented. The findings will help students establish a case for “defense to repayment” loan relief, a process by which students may be relieved of loan obligations if their schools violated state law. The investigation focused on Everest College and Wyotech College campuses in California as well as students nationwide who attended Everest University online.
In April, the U.S. Department of Education issued a $30 million fine against Corinthian for misrepresenting job placement rates at Heald Colleges. In June, Heald College students were given streamlined relief from student loan debt.
In 2013, Attorney General Harris filed a lawsuit against Corinthian Colleges for false adverting and deceptive marketing targeting vulnerable, low-income students. In February of 2015, the Department of Education and the Consumer Financial Protection secured more than $480 million in forgiveness for borrowers who took out Corinthian College’s high-cost private student loans.
“Corinthian preyed on vulnerable students who are now buried under mountains of debt,” said California Attorney General Kamala D. Harris. “Today’s join investigation findings will expand the pool of Corinthian students eligible for streamlined student loan relief options, helping them rebuild their lives and purse a brighter future.”
Former Corinthian students can learn more about debt relief by visiting http://oag.ca.gov/corinthian and www.studentaid.gov/Corinthian.
Megan Ginise: 559-441-6614