Category : Breaking University News

Corinthian Loan Forgiveness > Breaking University News
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.

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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.

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Corinthian Loan Forgiveness. Student Loan Forgiveness and Debt Relief. Disclaimer: Corinthian Loan Forgiveness is a private company and does not claim to be affiliated with any Federal, State, or Local Government agencies. The Corinthian Loan Forgiveness assists people to obtain Federal Government Student Loan Forgiveness and or Consolidation programs by pre-qualifying, preparing and submitting required documentation on their behalf. People with student loan debt have the legal right to use an attorney or process Federal Student Loan Services documentation on their own behalf.