AG Hawley Announces Corinthian College Students Eligible for Federal Student Loan Cancellation

Jun 8, 2017, 12:21 PM
Jun 8, 2017, 12:14 PM

Jefferson City, Mo. – Attorney General Josh Hawley, along with the Attorneys General of at least 42 other states and the District of Columbia, is reaching out to notify thousands of Missouri residents who attended schools operated by Corinthian Colleges, Inc. – including Everest Institute, Everest College, Everest University, Heald College, and Wyotech – that they are eligible for cancellation of their federal student loans used to attend those schools. If a student’s federal loan is cancelled, the student will make no more payments on the loan, and any payments already made will be refunded.

Approximately 3,000 Missouri residents are eligible for federal student loan cancellation and will receive a letter explaining the relief available and enclosing a short application that must be filed with the U.S. Department of Education. Letters will begin arriving on June 8, 2017.  

After intense scrutiny by various government entities, for-profit Corinthian Colleges abruptly ceased operations in 2015, transferring some of its campuses to a non-profit called Zenith Education Group.  The U.S. Department of Education then found that while it was operating, Corinthian Colleges made widespread misrepresentations between 2010 and 2014 about post-graduation employment rates at its Everest College, Everest Institute, WyoTech, and Heald College, campuses, and elsewhere across the nation. Lists of the affected campuses, programs, and dates of enrollment are available at https://www.StudentAid.gov/ev-wy-findings and at https://www.StudentAid.gov/heald-findings. Students who first enrolled in the identified campuses and programs during the specified time periods are eligible for streamlined discharge of their federal student loans. 

The Attorney General’s outreach will be sent to students who fall within the U.S. Department of Education’s findings of fraud discussed above, and who are eligible for a special “streamlined” process to discharge their federal student loans. However, any student who attended Corinthian Colleges 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.   

Borrowers should beware of student loan scams. You can apply for loan forgiveness, or get information on loan forgiveness, for free through the U.S. Department of Education. The U.S. Department of Education never charges application or maintenance fees, so if you’re asked to pay, walk away. 

It may take time for the U.S. Dept. of Education to process applications, so anyone who applies for loan discharge should continue making payments on the affected loans until informed by the U.S. Dept. of Education or the applicable loan servicer that the loans are in forbearance while the discharge application is pending or that the loans have been cancelled. 

If you have questions, more information about the Office’s outreach to former Corinthian Colleges students can be found at www.EverestOutreach.com, www.WyoTechOutreach.com or www.HealdOutreach.com. Students can also call the U.S. Department of Education hotline at 1-855-279-6207 or e-mail questions about discharge of their federal student loans to FSAOperations@ed.gov. Finally, you should always feel free to call the Attorney General’s Office regarding this or other consumer issues at 800-392-8222.


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