When Education Secretary Betsy DeVos hit “reset” on revamped Borrower Defense rules that aim to ensure students at troubled schools weren’t left with nothing but debt if their college collapsed, she noted that students who had already submitted claims for loan forgiveness wouldn’t be affected. But that doesn’t appear to be the case, as the Dept. hasn’t approved a single application in nearly six months. [More]
Corinthian College
Corinthian Colleges Allegedly Recruited Homeless Students, Advertised Non-Existent Programs
By 3.18.16
Just when you think the accusations levied against now-defunct for-profit college chain Corinthian Colleges couldn’t get worse — inflating job placement rates, grade manipulation, and questionable marketing practices — they do. The California Attorney General’s office filed thousands of pages of documents and testimony as part of its ongoing lawsuit against the school highlighting an even more egregious practice: allegedly recruiting homeless students and assisting them in taking out thousands of dollars in loans they could never repay. [More]
Dept. Of Education Working On Rules For Defense Of Repayment Law After Influx Of Claims
By 1.20.16
Under federal law, student loan borrowers may be eligible to have their debts discharged if they prove the school they attended deceived them with false promises related to their future careers. However, the measure has been used only sparingly in the past and few clear rules outline the forgiveness process. Now, after nearly two decades on the books, federal officials are finally getting around to crafting rules that could remove one roadblock for students seeking relief. [More]
Feds Forgive $103M In Debt For Nearly 7,000 Former Corinthian College Students
By 12.4.15
Nearly 7,000 additional former students of defunct for-profit chain Corinthian College will have their loan debt erased by the federal government. While the $103 million tab sounds like a lot, it’s only a fraction of the billions of dollars that Wyotech, Heald College and Everest University charged in tuition. [More]
Feds Win Default Judgment Against Corinthian Colleges Over Predatory Lending Scheme
By 10.28.15
In September 2014, just seven months before Everest University, WyoTech and Heald College closed their doors, federal regulators sued the for-profit colleges’ parent company Corinthian Colleges Inc claiming it duped thousands of students into taking out costly, predatory, and often financially devastating, private student loans to finance their post-secondary education. This week, the Consumer Financial Protection Bureau won a default judgment against the for-profit educator for engaging in a predatory lending scheme. [More]
California Halts Grants For Students At Corinthian’s Heald College Campuses
By 2.17.15
Nearly 4,500 students at California campuses of the for-profit Heald College chain — operated by the beleaguered Corinthian Colleges, Inc. — have been notified they won’t be receiving state grants to help finance their education because school administrators failed to provide financial statements to state regulators.
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