Attorney General Xavier Becerra Announces Outreach Program For Corinthian Students Who May Be Eligible for Loan Cancellation

Wednesday, May 31, 2017
Contact: (415) 703-5837, agpressoffice@doj.ca.gov

Estimated 38,000 California residents are eligible to apply for federal student loan cancellation

SACRAMENTO – Attorney General Xavier Becerra today announced an effort to notify thousands of California residents who attended schools operated by Corinthian Colleges, Inc., that they may be eligible for cancellation of their federal student loans used to attend those schools. An estimated 38,000 California residents are eligible for this federal student loan cancellation.

These former Corinthian students will receive a letter explaining the relief available and enclosing a short application that they must file with the U.S. Department of Education. Corinthian intentionally targeted low-income, vulnerable Californians through deceptive and false advertisements and aggressive marketing campaigns that misrepresented job placement rates and school programs.

“While students pursued higher education, this so-called educational institution preyed on their aspirations and tried to steal their American Dream,” said Attorney General Becerra. “For-profit colleges must be held accountable. This outreach program aims to connect with all affected students and help them cancel their student loans. I will continue working to ensure that all those who seek higher education can do so without having to worry about greedy for-profit schools.”

The colleges operated by Corinthian include Everest Institute, Everest College, Everest University, Heald College, and Wyotech. Students must apply to receive this relief, which will consist of cancellation of their federal loan and relief from future federal loan payments. 

The Attorney General’s Office previously released an online resource for former Corinthian students who have questions about their rights and options at https://oag.ca.gov/Corinthian.

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

Anyone who applies for loan discharge should continue making payments on the loans until informed otherwise by the U.S. Department of Education or loan servicer.

To report issues in obtaining help with their student loans, Californians are encouraged to contact the Attorney General and the Department of Justice through the Public Inquiry Unit here.

The California Attorney General’s Office led the charge against Corinthian and its subsidiaries, seeking to put an end to abusive practices that left tens of thousands of students under a mountain of debt and useless degrees, ultimately obtaining a $1.1 billion judgment against Corinthian on March 23, 2016.   

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