7Oct
photo26jpg-03782173c2c18cfe1-1500x430Genesis Loan Forgiveness

Genesis Loan Forgiveness

Corinthian Colleges’ Demise

As you may have heard, Corinthian Colleges Inc. has closed its doors after years of scrutiny and investigations by the government. The for profit company comprised Everest, Heald and WyoTech colleges, and was been unable to answer for the multitude of charges brought against them.

Once one of the biggest for-profit college chains, the Corinthian Colleges collapsed shortly before fall 2014 due to the federal government cutting off funding as investigations into falsified data persisted. This created a shortage in funds and an inability to procure new investors. As a result Corinthian sold most of its schools to a nonprofit student loan company, however, due to an ongoing investigation by the Department of Education and a litigation with California Attorney General Kamala D. Harris, Corinthian was prevented from selling more than 24 campuses in the western states.

As Corinthian is being systematically dismantled, it’s been forced to forgive some private student loans it lured students into taking. As part of the deal for Corinthian Colleges to sell half of its campuses to ECMC Group, the CFPB won a battle in seeking a $480 million write off of Corinthian’s private Genesis loans for student borrowers. This accounts for about 40% of the overall debt for Genesis loan holders.

 

Private Student Loans

Student loan debt has reached an all-time high, and according to the Consumer Financial Protection Bureau, the total amounts to around $1.2 trillion, with an astonishing 7 million Americans currently in default.

Out of this amount, somewhere in the neighborhood of $150 billion is private student loan debt. This is a problem for multiple reasons; private student loans generally have higher interest rates compared to federal student loans, costing more money to pay off. There are fewer repayment options available for private student loans as well.

There are currently many programs available for federal student loans, and now, relief is finally available for private student loan debt as well.

Learn More
8May
bedford-parkCorinthian Colleges Files for Bankruptcy

Corinthian Colleges Files for Bankruptcy

Corinthian Colleges, until recently one of the country’s largest for-profit higher education chains, filed for chapter 11 bankruptcy this Monday, one week after shutting down its remaining campuses.

This marks the climax of the collapse of the company that was once praised on Wall Street for its profitable model of offering degrees to low-income students who took out heavy student loans from the government to pay the cost of their tuition. However, allegations accumulated around the company, exposing lies about the success of its programs and the predatory methods used to push loans on its students, ultimately leading to a slew of government lawsuits and a loss of access to its primary source of funding, the federal government.

Corinthian Colleges, which operated Everest, Heald, and WyoTech colleges, spend much of this past year winding down its operations due to the Department of Education cutting off its access to federal aid due to allegations of falsified job placement claims and graduation rates. The department allotted Corinthian $16 million in federal funding to keep it alive long enough to sell or close its 107 campuses around the country.

In November, one of the largest debt collectors employed by the Department of Education, ECMC Group, bought more than half of Corinthian’s campuses for $24 million. Corinthian was having trouble selling off the remaining schools amid growing government lawsuits and a large federal fine.

Just a few weeks ago, Corinthian was hit with a $30 million fine for misrepresenting its job placement rates; an allegation the school denies. The department discovered 947 cases of false placement rates given to students. Heald College was found to be paying temp agencies to hire its graduates to work as few as two days, so they could add those students to their job placement statistics.

Corinthian is also being sued by several state attorneys general for its deceptive marketing practices. Corinthian is also entangled in a $500 million lawsuit with the Consumer Financial Protection Bureau, which accused the company of intentionally steering its students into high cost loans.

Due to the closure of these schools and the pending lawsuits against them, students currently have the option for loan forgiveness if they meet certain qualifications. Call us today to find out if you are eligible.

Learn More
27Apr
corinthian-colleges-closing1Corinthian Colleges Closes Its Door

Corinthian Colleges Closes Its Door

Corinthian Colleges Inc. has now closed its doors. After years of scrutiny and investigations by the government the Corinthian Colleges are closing for good. The for profit company comprised of such colleges as Everest, Heald and WyoTech has been unable to answer for the multitude of charges brought against them. In 2014, the Consumer Financial Protection Bureau sued Corinthian Colleges Inc. for predatory lending practices. In April, 2014 the U.S. Department of Education fined them $30 million for misrepresentation.

Once one of the biggest for-profit college chains, the Corinthian Colleges collapsed shortly before fall 2014 due to the federal government cutting off funding as investigations into falsified data persisted. This created a shortage in funds and an inability to procure new investors. As a result Corinthian sold most of its schools to a nonprofit student loan company, however, due to an ongoing investigation by the Department of Education and a litigation with California Attorney General Kamala D. Harris, Corinthian was prevented from selling more than 24 campuses in the western states.

The company said that it was undergoing negotiations to sell its remaining colleges and to provide a way for students to transfer and continue their education but was unsuccessful due to liability being passed on to the new buyers as well as financial penalties accompanied with it.

Corinthian Colleges inc has “Ceased substantially all operations” though they haven’t filed yet for bankruptcy. The schools close on Monday, April 27th, 2015 and will not reopen. The schools that are closing include 13 Everest and WyoTech campuses and 12 Heald College campuses as well as its online division.

Transferring credits from one post secondary private college to another is generally problematic and rarely does it work. The students are forced to choose one of two options; Apply for federal student loan forgiveness and start over in a new university or try to find a school that will accept their credits. The closure, announced Sunday, April 26th, 2015, was abrupt and not expected for months to come. They effectively gave students and staff one days notice that the colleges will be shut down giving them very little time to prepare for the next step.

If you were affected by the demise of Corinthian Colleges Inc. and believe you may be entitled for federal student loan forgiveness through one of the Department of Education’s forgiveness programs call us today to see if you qualify for forgiveness.

Learn More
18Apr
diplomaslider.jpgCorinthian Colleges Fined for Bogus Job Placement Claims

Corinthian Colleges Fined for Bogus Job Placement Claims

Corinthian Colleges Inc. has been fined $30 million by the U.S. Department of Education, which claims that the for-profit college operator of Everest, Heald, and WyoTech has been falsifying job placement rates to students.

Heald College has campuses in California, Oregon and Hawaii, and the DOE found 947 cases of false job placement rates, including instances where the college paid companies to create temporary jobs for graduates so they could be counted as placements. Some of the jobs lasted only two days. U.S. Under Secretary of Education Mitchell said that Corinthian “violated students’ and taxpayers’ trust,” and failed to provide “clear and accurate information to help students choose which college to attend.”

Corinthian was once among the largest of for-profit higher education operators in the United States, but last June the Department of Education declared it would restrict federal aid to the company over concern that they were falsifying job placement data. Corinthian agreed to sell off most of its schools, a majority of which was sold to a nonprofit student loan servicer last November. Corinthian still owns some of the schools, like Heald, but the Department of Education said that Heald College can no longer enroll new students, and must assist current students finish their education or complete it at a different college.

The fine comes when Corinthian has been seeking buyers for its Heald campuses. Last week, Heald’s president, Eeva Deshon, issued a press release saying the attorney general’s lawsuit was effectively blocking the sale.

Part of the lawsuit includes an injunction that requires buyers to assume potential legal liability at the school.

Hixson, the Corinthian spokesman, said the department’s fine “further threatens Heald’s future” by adding “financial and operational hurdles to prospective buyers.”

While details of this lawsuit are being worked out, Goodbye Loans can help determine if you might qualify for the student loan forgiveness as a result of the lawsuit. And in the meantime, our team of dedicated student advocates will help reduce your monthly cost to the minimum amount possible until such a time that forgiveness may be a possibility.

Goodbye Loans matches thousands of graduates with federal programs that are offered by The Department of Education to consolidate and lower their current Federal student loans. We help you take advantage of the latest regulations put in place by Congress and President Obama and potentially save thousands of dollars. Debt is hard to ignore. When you’re staring down a ballooning credit card balance and fending off insistent phone calls from angry creditors, it can be an all-consuming enemy.

Learn More
20Mar
thorntonFormer Students of Everest, WyoTech and Heald

Former Students of Everest, WyoTech and Heald

As part of an agreement with the federal government, Corinthian Colleges — which previously owned Everest — sold most of its schools to Education Credit Management Corp. ECMC has agreed to take steps to compensate former Corinthian students for some of their losses.

The key financial block is $480 million, which will be reimbursed to tens of thousands of Corinthian students who attended between 2011 and late 2014.

“That $480 million is substantial and immediate,” said Lauren Asher of The Institute for College Access and Success. “In addition to having their monthly debt payments reduced by as much as 40 percent, those borrowers will see the dark marks on their credit reports removed, if they’re related to those bad loans.”

As Corinthian has been systematically dismantled, it’s been forced to forgive some private student loans it lured students into taking. But so far the federal government has taken no measures to address the federal student loans taken out by Corinthian students, which Inside Higher Ed estimates to be more than half a billion dollars. As part of the deal for Corinthian Colleges to sell half of its campuses to ECMC Group, the CFPB won a battle in seeking a $480 million write off of Corinthian’s private Genesis loans for student borrowers. According to CFPB director Richard Cordray it “was a tremendously successful result for many thousands of young people and their families that had been seriously harmed by Corinthian’s deceptive marketing.”

This $480 million however, just covers the Genesis loans, not the federal loans Corinthian students borrowed from the Department of Education. The 15 students and their advocates claim that since Everest, Heald and WyoTech were purveyors of almost worthless credentials, these loans should also be forgiven. Luckily for students, due to an extension of the programs initiated under President Obama, there is room for more students to get into the available forgiveness programs. If you would like to see if you qualify for one of these programs, you can give us a call at (800) 940-8911.

Learn More