WASHINGTON POST: How the government plans to help students left hanging by for-profit Corinthian Colleges
Career College Central Summary:
The collapse of the controversial for-profit Corinthian Colleges left 16,000 students without degrees that many took on debt to complete, and hundreds of others fighting for the government to forgive debt they are struggling to repay.
Now the government is taking steps to make it easier for those students to get debt relief. But there is still a high bar of proof for some borrowers who may not receive any help, leaving lawmakers and consumer advocates questioning whether the government is doing enough to clean up a mess they say could have been prevented.
Corinthian, which ran Everest Institute, Wyotech and Heald College, filed for bankruptcy in May that the company lied about the success of its programs and trapped students in predatory loans.
The company’s implosion left thousands of students unsure of what to do with their debt or even where to complete their educations.
On Monday, the Education Department said it will allow more students to apply to have their loans forgiven if they attended Corinthian in the last year. Instead of only letting students who attended a Corinthian school within 120 days of it closing request loan forgiveness, the department has extended the window to June 20, 2014–when the government cut off Cortinthian’s access to federal funds. The expansion would make a total of 15,000 students with about $200 million in loans immediately eligible to have their loans forgiven.
Still, students who opt to transfer their credits to another school would not be eligible to have their loans forgiven as a result of Corinthian closing. But they can still file, an appeal to the Education Department to forgive their federal loans on the grounds that Corinthian broke the law.
Click through to read the full article.
Leave a Reply
Be the First to Comment!