News
In Groundbreaking Decision, Judge Halts Collection of For-Profit College Student Debts | Press Release
In a landmark decision for defrauded students of Corinthian Colleges, a U.S. District judge late Friday stopped the Department of Education from applying its “average earnings rule” to cheated former students of Corinthian Colleges, and prevented the Department from collecting on the plaintiffs’ loans. The ruling enjoins the Department of Education from using its partial relief scheme, which it has been applying to partially deny thousands of borrowers’ applications for loan relief, because that scheme clearly violates the Privacy Act and causes severe and irreparable injury to borrowers.
Student Who Took on ‘Crushing’ Debt Angry After Betsy DeVos Scales Back Investigations of For-Profit Colleges | Time
Yvette Colon took out more than $35,000 in student loans and spent two years at a for-profit college to get a certificate that she says is worthless. Now, she fears even more students could fall into a similar trap after Education Secretary Betsy DeVos reportedly crippled the office charged with investigating the company behind Colon’s now-defunct college, Career Education Corporation, and several other for-profit institutions.
Ex-Corinthian Students Look To Bar Fed Loan Collections | Law360
The U.S. Department of Education flouted federal law on agency rulemaking and violated the Privacy Act when it suddenly changed its student loan forgiveness policy, a putative class of former students of the now-defunct Corinthian College told a California federal judge Monday, arguing that without a temporary bar on the new policy, they’d be forced to choose between life necessities and loan defaults.
Hearing Could Determine Fate of Corinthian College Student Loan Debt | CBS Los Angeles
Thousands of ex-Corinthian Colleges students are anxiously awaiting the outcome of a Monday court hearing that could determine whether they still have to pay the loans they took out to attend the now-closed, for-profit colleges.
Feds Push to Collect From Defrauded Corinthian Students | Courthouse News Service
A Justice Department lawyer on Monday defended cutting loan debt relief for some 100,000 students defrauded by Corinthian Colleges, arguing the Department of Education never promised to wipe out all of their debt.
Student Loans: Court Fight Looms Over Debts of Former Corinthian Colleges Students | USA Today
Thousands of former Corinthian Colleges students face a potentially pivotal court hearing Monday in a battle to erase millions of dollars in loan debt for their studies at the scandal-scarred, for-profit schools.