Scores of scholars who were defrauded by Corinthian Colleges, the now-defunct for-profit education provider that oversaw countless campuses across the country, will have their student loans forgiven, the united states?Department of Education?has announced.
The Education Department investigated a lot more than 100 installments of alleged fraud by Corinthian College. Students who attended 91 different Corinthian schools across 20 states is going to be eligible to have their loans forgiven. Based on Lauren Camera of US News, the Education Department has approved loan absolutions for more than 8,800 former Corinthian students, totaling a lot more than $130 million. Now, about 250,000 students may have an opportunity to apply for federal loan forgiveness.
\”When Americans invest their time, money, and energy to gain new skills, they have a right to expect they\’ll have an education leading to a better life on their behalf and their families,\” Secretary of Education John King said. \”Corinthian was more worried about profits than about students\’ lives.\”
Findings says Corinthian was dishonest about graduates\’ job placement rates, advertised degrees it did not offer, and misled students about its credit transfer policies.
The Education Department first launched a financial oversight of Corinthian College in 2014. It slapped the giant for-profit vendor with a $30 million fine last April because of its fraudulent job placement rates. Then, in that same year, Corinthian College declared bankruptcies and closed its remaining campuses.
A decision by the Superior Court Judge in Bay area, Curtis Karnow, spurred the training Department\’s announcement. The Los Angeles Times reports that Judge Karnow officially ruled that Corinthian College had misled students, used unlawful debt-collection practices and violated what the law states.
Many advocacy groups have criticized the Education Department for acting too slowly with respect to students. A reporter for that Washington Post, Danielle Douglas-Gabriel, notes that critics are demanding the Department stop sifting through a large number of individual claims and instead?administer collective debt relief.
\”The pace of relief for wronged Corinthian students – remains for not fast enough, and its scope frustratingly narrow,\” says Alexis Goldstein, a senior policy analyst at Americans for Financial Reform. \”With each passing day, more evidence accumulates that the illegal acts the department and others documented within their Corinthian enforcement actions were endemic through the entire chain. But nonetheless, interest is still accumulating around the federal student loans held by thousands and thousands of former Corinthian students who\’ve not yet received relief.\”
Nevertheless, the Department\’s announcement comes at any given time when for-profit educational institutions are under heightened scrutiny. Policymakers have discovered that for-profit institutions often will finagle their job placement rates or their statistics on graduates\’ career earnings to improve their enrollment rates. Secretary King\’s department has created the Student Aid Enforcement Unit as a means to respond more quickly to allegations of illegal or duplicitous actions committed by institutions of higher learning.
\”We continues to take action to safeguard students and taxpayers from unscrupulous companies trying to profit from students who only desire to better their lives.\”