Corinthian Student Debtors
Thousands of defrauded student debtors from CCI for-profit college chain have lead the student debt strike as the Corinthian Collective. If you are a Corinthian victim. You can join to find more information about what you can do to help by visiting the Corinthian Collective, you can join the Strike!
Because of Debt Collective there is now a true voice of student debtors on the Corinthian College Inc. Bankruptcy Committee. --WikiNiki (talk) 15:22, 8 October 2015 (PDT)
Corinthian Colleges, Inc. Systematically Defrauded Students
Corinthian Colleges Inc.: Life after Everest, Heald & Wyotec
You're Not a Loan number, You’re a Future Bankruptcy Victim Corinthian stands accused of predatory lending, false job placement statistics, deceptive marketing, securities fraud, and the unlawful use of military seals in advertisements.
- Corinthian faced multiple investigations and subpoenas by state attorneys general: California (2007 and 2013), Florida (2010 and 2012), New York (2011), Oregon (2011), Illinois (2011), Wisconsin (2013 and 2014), Minnesota (2013), Massachusetts (2014), and a multi-state investigation from 16 attorneys general.
- Corinthian also faced lawsuits, subpoenas and investigations from regulators: the Securities and Exchange Commission (2013 and 2014), the Consumer Financial Protection Bureau (2014), and the Department of Education (2015).
Despite almost a decade of warnings, the Department did not restrict or revoke Corinthian’s eligibility for government financial aid until June 2014.
A broad coalition has called on the Department of Education to use its authority to do a class-wide cancellation of Corinthian debt, including:
- Dec 9 letter from Thirteen Senators;
- April 9 letter from Nine state Attorneys General; and
- April 20 letter from Three members of the House of Representatives.
Corinthian Committed It's Vast Fraud Using Taxpayer Money
- Corinthian took in over $1.2 billion per year in federal student loan money.
- At its peak, Corinthian received more than half a billion dollars per year from the federal Pell Grant program.
- For-profit schools like Corinthian can receive up to 90% of their money from federal student loans, through the “90/10 Rule.”
- They can receive more if they enroll veterans, as GI Bill money is not counted towards the 90% limit. This has led to the targeting of veterans.
- Corinthian received $186 million in Veterans Affairs Post-9/11 GI Bill dollars.
Department of Education Policy Asks
- Publicly call on the Department of Education to cancel all debt of current and former Corinthian students.←
- Currently, only 88% of Heald students are eligible for a “fast-track” discharge process; Everest and Wyotech students must apply through a more burdensome process←
- Call for the Department to temporarily freeze debt collection, wage garnishment and negative credit reporting with it makes a decision on debt cancellation
The Department of Education Has the Legal Authority to Cancel Corinthian Debt:
The Higher Education Act grants the Department broad authority to cancel the federal loans of students harmed by postsecondary schools that engage in deceptive or unlawful practices. >br>
- The Department has authority and complete discretion to automatically cancel the debts of harmed Corinthian students through its broad settlement and compromise authority.
- The Higher Education Act grants the Secretary broad authority to “compromise, waive or release any right, title, claim, lien, or demand, however acquired . . . .” 20 U.S.C. § 1082(a)(6). This broad authority is reflected in the regulations, which state that “the Secretary may compromise a debt, or suspend or terminate collection of a debt, in any amount if the debt arises under the Guaranteed Student Loan Program authorized under Title IV, Part B of the Higher Education Act of 1965, as amended . . . .” 34 C.F.R. § 30.70(h).
- The Department also has the authority to cancel debts through False Certification.
- The Higher Education Act also obligates the Department to cancel student loans when a school closes or has falsely certified a student’s eligibility for financial aid. 20 U.S.C. § 1087(c)(1),
- Finally, the Department could cancel debts through Defense to Repayment—including on a class-wide basis.
- Under provisions of federal loan promissory notes and regulations, the Department is obligated to grant loan relief when a student provides evidence that the school has violated a state or federal law. 20 U.S.C. § 1087e(h).
- In the Direct Loan Master Promissory Note and 34 C.F.R. § 685.206(c), the Department has provided that a borrower may assert as a defense to repayment “an act or omission of the school . . . that would give rise to a cause of action against the school under applicable State Law.”
- 34 C.F.R. § 682.208(g) and a provision in the Federal Family Education Loan Program (“FFEL”) Master Promissory Note, which provide that FFEL loan holders are subject to all claims and defenses that a borrower could assert against a school if the school referred borrowers to the lender.
Facts About the Corinthian Colleges Crisis
- Corinthian spent $620,000 on lobbying in 2014, the year they collapsed.
- Instead of closing the failed school down — which would have made over 72,000 students eligible for a refund — the Department of Education decided to save it.
- The Department facilitated a sale of 56 Corinthian campuses to the debt collector ECMC, and even bailed the school out — providing a $16 million emergency cash infusion last June.
- In its bankruptcy filings, Corinthian was found to have made secret payments to an array of political consultants, think tanks and political dark money groups.
"Talk to an Everest graduate. They'll tell you how the school really helps, there are several reasons, here's just a few, there are many more. They Lied about total Price, Lied about Accreditation, Lied about Time it would take to finish, Lied about Alleged job placement and job search, basically they lied about everything, and they breached the contract with fraud.
- Financial aid is available for those who don’t qualify. And they will even take out loans for you when you don’t know about them don’t worry they have auto signs for you.