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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.

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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.

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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.