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April 20, 2017

Former Corinthian Colleges Students Notified about Federal Student Loan Cancellation

Miller notifies former students of for-profit schools about potential eligibility

DES MOINES – Attorney General Tom Miller this week is notifying more than 500 Iowans who are former students of schools operated by for-profit Corinthian Colleges Inc., that they are eligible for cancellation of the federal student loans they used to attend those schools.

The schools include Everest Institute, Everest College, Everest University, and Heald College. Former students who are eligible for debt cancellation must apply to the U.S. Department of Education.  Students whose federal loans are cancelled will be able to stop loan payments and will be refunded for past payments.

After intense scrutiny by various government entities, including Miller’s office, Corinthian abruptly ceased operations in 2015, transferring some of its campuses to a non-profit called Zenith Education Group.

The U.S. Department of Education then found that between 2010 and 2014, Corinthian Colleges made widespread misrepresentations about post-graduation employment rates at its Everest College campuses and elsewhere across the nation.

Lists of the affected campuses, programs, and dates of enrollment are available at www.StudentAid.gov/ev-wy-findings and at www.StudentAid.gov/heald-findings. Students who initially enrolled during the specified time periods in the identified campuses and programs are eligible for streamlined discharge of their federal student loans.

Miller’s outreach, which coincides with mailed notices from more than 40 other attorneys general in their respective states, targets students who fall within the U.S. Department of Education’s findings of fraud referred to above, and who are eligible for a special “streamlined” process to discharge their federal student loans.

However, any student who attended Corinthian Colleges and believes that the school lied about job prospects, the transferability of credits, or other issues may apply to have his/her federal student loan canceled using the Department of Education’s universal discharge application at https://borrowerdischarge.ed.gov. More information is also available at https://studentaid.ed.gov/borrower-defense.

Borrowers should beware of student loan scams, and should know that they can apply for loan forgiveness, or get free information on loan forgiveness through the U.S. Department of Education. The agency does not charges application or maintenance fees.

Anyone who applies for loan discharge should continue making payments on the affected loans until the U.S. Dept. of Education or loan servicer informs them that a federal loan is in forbearance while an application is pending or that a loan has been cancelled. Forbearance is a period in which student loan payments are temporarily suspended or reduced (though interest continues to accrue while the forbearance is in effect).

Former Corinthian students can find more information about federal student loan cancellations at www.everestoutreach.com. Students can also call the U.S. Department of Education hotline at 1-855-279-6207 or e-mail questions about discharge of their federal student loans to FSAOperations@ed.gov.

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