Corinthian Colleges Inc. Files For Bankruptcy

Corinthian Colleges Inc. Files For Bankruptcy

A week after embattled for-profit college chain Corinthian Colleges Inc. closed its remaining Everest University, Heald College and WyoTech campuses, the company filed for bankruptcy, essentially closing the book on the company’s long downward spiral.  [More]

(thisisbossi)

Petition Calls For Loan Relief For Corinthian College Students

Ever since for-profit education chain Corinthian Colleges began its downward spiral last summer, consumer groups, students and legislators have urged the Department of Education to provide current and former students relief from student loans they took out to finance an education based on deceptive recruitment practices. Now that CCI has closed its remaining Everest University, Heald College and WyoTech campuses, consumer advocates say discharging federal student loans held by these students – and protecting students of other for-profit institutions – should be of immediate concern for the Department. [More]

Corinthian Colleges Completes Collapse, Closes Remaining Campuses Effective Immediately

Corinthian Colleges Completes Collapse, Closes Remaining Campuses Effective Immediately

Although it was nearly a year in the making, the largest collapse in U.S. higher education finally occurred Sunday, as embattled for-profit education chain Corinthian Colleges Inc. – the operator of Everest University, Heald College and WyoTech – announced it would close the remainder of its campuses effective Monday. [More]

(Hammerin Man)

Senators Want To Close Federal Funding Loophole Exploited By For-Profit Colleges

Each year for-profit colleges receive billions of dollars in Post 9/11 GI Bill benefits by exploiting a loophole in the rules that govern how these institutions collect federal funds. Once again, a group of senators has set out to change the way in which these schools count student aid, this time by urging the Department of Education to take an aggressive stand. [More]

Corinthian Colleges Fined $30M Over Falsified Job Placement Rates At Heald College

Corinthian Colleges Fined $30M Over Falsified Job Placement Rates At Heald College

The Department of Education continued its crackdown on deceptive for-profit college practices Tuesday by levying a $30 million fine against embattled Corinthian Colleges Inc. – operator of Everest University, Heald College and WyoTech – over the use of misstated and inaccurate job placement rates to recruit students. [More]

(Tim schreier)

Nine Attorneys General Join “Corinthian 15,” Urge DOE To Provide Student Loan Debt Relief For Wronged Borrowers

A group of former and current Corinthian College Inc. students refusing to pay their federal student loans in protest of the government’s support of the crumbling for-profit college chain now have the backing of several top political officeholders afternine attorneys general from across the U.S. sent a letter to the Department of Education asking it to forgive the students’ loan debts. [More]

(Adam Fagen)

Dept. Of Education Reveals Names Of 550 Colleges — Mostly For-Profits — Under Federal Scrutiny

For months now, Congress has debated the merits of creating an oversight committee tasked with improving coordination in federal and state oversight of the for-profit college industry. If that group ever comes to fruition, it appears they would likely have their work cut out for them, as the Department of Education recently released its previously secret list of colleges under scrutiny for financial reasons, half of which are for-profit schools. [More]

(Tim Schreier)

Student Aid Bill Of Rights Aims To Overhaul Federal Student Loan Repayment, Servicing Process

The way in which borrowers pay back their federal student loans – from checking the balance to filing complaints against servicers – is set to change with the signing of a presidential memorandum Tuesday. [More]

(tomQ)

Report: Taking For-Profit Colleges Nonprofit Can Generate Hefty Profits For Owners

Earlier this year Education Credit Management Corporation bought 56 campuses from embattled for-profit chain Corinthian Colleges Inc. and took the schools to the nonprofit sector. While that conversion was initiated because of the ongoing collapse and financial problems facing CCI, other college chains have dropped the for-profit status seemingly to pick up hefty profits. [More]

(pshorten)

U.S. Department Of Education Cuts Ties With Five Debt Collection Agencies To Protect Borrowers

Consumer advocates applauded the Department of Education’s announcement last week to end contracts with five private collection agencies that provided inaccurate information to borrowers. [More]

(Sapurah Lashari)

Senators Chastise Govt. For Making Money Off Struggling Student Loan Borrowers, Not Offering Enough Relief

For several years now the government has offered federal student loan forgiveness programs aimed at helping borrowers to avoid defaulting on their debts. While recent reports have shown that the popularity of the programs has exceeded expectations, a group of six senators say the Department of Education could do more given the billions of dollars in payments it receives from federal loans each year. [More]

A group of 15 Corinthian College students are refusing to repay their federal student loans.

Current, Former Corinthian College Students Go On “Debt Strike,” Refuse To Pay Private & Federal Loans

With for-profit educator Corinthian Colleges Inc. selling off campuses and closing schools, thousands of Everest, WyoTech, and Heald College students are waiting to learn the fate of the more than $1 billion in private and federal student loan debt used to finance their education. While the Department of Education and the Consumer Financial Protection Bureau have worked to secure deals in which some of that debt will be forgiven, some students are increasing the pressure on such deals by staging a “debt strike.” [More]

Deal Provides $480 Million In Debt Relief To Current & Former Corinthian Colleges Students

Deal Provides $480 Million In Debt Relief To Current & Former Corinthian Colleges Students

When student-loan servicing company Educational Credit Management Corporation revealed it would purchase 56 campuses belonging to embattled for-profit college chain Corinthian Colleges, regulators and consumer advocates began working to ensure that students affected by CCI’s collapse would be protected under the deal. Today, the Consumer Financial Protection Bureau and the U.S. Department of Education announced some students would receive the help they deserve in the way of $480 million in debt relief. [More]

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Will New Owner Of Everest University, WyoTech Continue With Old Owner’s Sketchy Practice?

When students apply to one of the for-profit schools owned by Corinthian Colleges Inc., they sign away their right to seek any legal action against the company if they’re wronged. Now that CCI is selling off 56 of its Everest and WyoTech campuses, the new owners have a chance to end this anti-consumer practice, but will they? [More]

(Newton Free Library)

Treasury Dept. Urges Student Loan Servicers To Do A Better Job, Try Incentives

Hot of the heels of a report from the Consumer Financial Protection Bureau detailing how loan servicers trick consumers into paying more, top officials with the Department of Treasury implored the industry to fix their often nefarious ways. [More]

(MeneerDijk)

For-Profit College Group Sues, Doesn’t Want To Be Responsible For Graduates’ Success

Last week, the U.S. Dept. of Education finally passed a somewhat compromised rule aimed at reining in for-profit colleges by penalizing them if too many of their graduates failed to succeed. But even that flawed rule is too much for a group representing for-profit colleges, which labeled it “arbitrary and irrational” in a lawsuit seeking to block it. [More]

(Sapurah Lashari)

Rule Aims To Hold For-Profit Schools Accountable For Grads’ Success, But May Fall Short

The Dept. of Education has been trying for years to craft a “gainful employment” rule that would penalize schools — mostly for-profit career training programs — by taking away access to federal funds if they fail to provide the adequate tools for their students to find work. Two years after failing to enact a heavily compromised version of these rules, the Ed. Dept. folks have unveiled the latest version with stricter guidelines, but which some consumer groups say don’t do enough to protect students at these schools. [More]

The number of students defaulting on some federal loans within three years of beginning repayment has decreased.

650,000 Student Loan Borrowers Who Began Repayment In 2011 Have Defaulted On Federal Loans

Maybe more consumer are realizing the long-lasting negative effects that can come from not repaying their student loans. Or maybe not. we don’t really know why, but we do know that the number of borrowers defaulting on some federal student loans is decreasing. [More]