Corinthian Colleges SCANDAL: Can Students Hope For Loan Forgiveness?

2 months ago

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Historically, Corinthian (onetime Santa Ana) is a Cali-based company, which is well-known because of a loud student debts story. During 2009-2010, the company established 100+ campuses, known as Corinthian colleges subsidiaries. On the whole, there were 25 states and 110,000 students to use the educational serivces offered Corinthian Colleges. Also, the certificates and degree programs were offered through Heald, WyoTech, and Everest colleges. Finally, according to the court filings, Corinthian college transcripts received $1,7 billion in federal student aid.

 

As you may know, the end of the story is not an optimistic one for both the students and the for-profit colleges. It appeared to be a shemozzle that transformed into a real hype. Check out retrospective of the infamous scandal delivered to you by the Typical Student team.

 

Corinthian Colleges Scandal: Brief Review

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Source: Fortune

 

To make a long story short, the borrowers said they were defrauded by Corinthian. How? On the one hand, there was disinformation regarding future career possibilities. On the other hand, students were also defrauded in terms of possible job placement people were waiting to get after the graduation. For example, J. Spencer, who used to be Corinthian student, said that the company wants him to pay more than $25,000 for a program, which took only 9 months. The sum contains charges for such services as ventilation, heating, etc.

 

Although Mr. Spencer graduated 6 years ago, the result of his studying does differ from what he was promised. Actually, this form of education never brought Spencer a lasting job. To say more, according to Mr. Spencer, during the training students mostly read books and other supporting materials. Talking about a real hands-on experience, it took only 1/10 of education time. As a result, Spencer spent less than a week at his new job located in Redwood City, CA. He left it due to a poor skill level. It made Spencer look for the borrower defense to repayment loan discharge.

 

The story of Spencer clearly describes why all the mentioned students asked U.S. Department of Education to forget about the loans.

 

Corinthian Student Loan Forgiveness Program

 

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Source: Patch

 

Now it’s time to move to Corinthian Student Loan Forgiveness program. It’s the program that helps students (or alums) to forget about their debts. Shortly, you can get forgiveness for any student loan that requires Corinthian-related payments. The list includes the next affiliated schools:

  • Wyoming Technical Institute (aka WyoTech);
  • Heald College;
  • Everest College.

Initially, there are 2 ways one can get the benefits of Corinthian Student Loan Forgiveness program. First of all, it’s possible thanks to the Closed School Relief program. It seems to be the easiest way to get forgiveness as well as the simplest one. It does not require any additional work or background activities. To enter the program, a borrower is required:

  • to be a student of any Corinthian school, which was closed in 2015, April 27;
  • to provide an explanation on what had happened.

How to Apply for Corinthian Student Loan Forgiveness Program?

 

corinthian-colleges-scandal-03Source: CNN

 

To apply for a Corinthian Colleges Closed School Relief Discharge, follow these steps:

  • Fill out the Closed School Discharge Application form;
  • Send it to the loan servicer;
  • Ask them for further guidance.

By the way, don’t forget to check the full list of schools that were closed in 2015. With it, you can look for CTU loan forgiveness, university of Phoenix loans discharged, and much more.

 

How to Apply for Defrauded Student Relief Program?

 

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As it was promised, let’s name the other next way to get forgiveness - Defrauded Student Relief program. Honestly speaking, this program looks more complicated because of multiple details you will need to work with. What will you need to do to succeed win? To put it briefly, you have to prove show the Federal Government that Corinthian Colleges defrauded you. For today, the most popular reasons are:

  • false advertising;
  • long-term job;
  • rich practice, etc.

When it comes to Defrauded Student Relief program, you need to find an actual proof to show that they did, said or promised you something wrong. It’s harder than the previous point. Still, it’s doable easy if you remember all the aspects. Once you are through with this, be ready to work on an important legal document, called Borrowers Defense Against Repayment letter.

 

Before everything all else, keep in mind that it requires legal work, which means the process will be longer. So, how does Borrowers Defense Against Repayment letter work? It allows discharging student loans in case the fraud was proven. The best thing is that this program, unlike Defrauded Student Relief, can be used for any school or college. Yep, it can literally be any place. Thus, it doesn’t matter if the school was closed (or not) and the program was completed (or not).

 

Bottom Line

In summary, let’s figure out how the story of Corinthian colleges and student debts ended. As expected, the government lawyers opposed the motion. However, the company shuts all the campuses in 2015. It was the result of the conclusion the Department of Education made. It says that the company misled its students as well as the federal government about the future job hiring rates. This world is such a complicated thing but it looks like this story can have its happy end. Being a part of any of Corinthian colleges or other school that lies to its students, don’t be afraid to fight.

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Any questions or propositions?