An original group of 15 individuals from Corinthian Colleges announced over a month ago that they would no longer make payments on their student debt because the school had broken the law. Since then, 85 others have joined the “revolt”, and according to reports, they are now getting support from the state’s attorney general and U.S. senators in their attempts to have student loans forgiven.
Corinthian has been in hot water for some time. They run the Everest Institute, Wyotech, and Heald Colleges, and they are known for having some of the worst practices in the for-profit education sector. Included in this list of grievances are:
- High loan defaults
- Dubious programs
- Allegations of deceptive marketing
- Lying to the government about graduation rates
Corinthian lost all access to federal funds last year, forcing the company to either sell or close their schools. Since the school’s deterioration, students have started calling on the Education Department to wipe away debt Corinthian had pressured them into taking. After pleading with the department for months, they finally teamed up with the Debt Collective—an offshoot of the Occupy Wall Street movement—and began to protest.
It’s a risky move, as many could lose their paychecks, tax refunds, or even a portion of their Social Security. According to organizers, most strikers are already in default.
Those at The Associated Press have compiled a useful and easy-to-read list of common questions and answers regarding the situation, a couple of which are listed below:
Q. How big is the problem with the Corinthian College situation?
A. Corinthian was one of the country’s largest for-profit colleges, operating Everest College, Heald College and WyoTech, online and physical campuses. About 72,000 students attended.
The Education Department said Corinthian failed to provide adequate paperwork and comply with requests to address concerns about company’s practice, including allegations of falsifying job placement data in marketing and altering grades and attendance records. The schools faced state attorneys general action in several states.
Students got $1.2 billion a year in federal loans in the final year the schools operated under Corinthian’s banner, court documents show. But because of the time it takes to pay off student loans, billions more of outstanding loans likely has built up. The department says it’s still calculating what it would cost to pay out claims.
Q. What are the department’s options?
A. If it were to forgive the debt of Corinthian students, it would be potentially opening a can of worms. Would all past Corinthian students be eligible? Or, just those in states where attorneys general take action? Should similar relief be extended to students enrolled at other colleges alleged to have engaged in similar violations of the law?
If the Education Department discharges the debt, that would be an acknowledgment that it had allowed Corinthian to take advantage of students for years. Aside from canceling the debt, another option would be to at least partially relieve it. Otherwise, without any relief from the department, the next step would be lawsuits.
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Sources:
Douglas-Gabriel, Danielle. The Washington Post. Mar 30, 2015. (http://www.washingtonpost.com/news/get-there/wp/2015/03/30/a-revolt-is-growing-as-more-people-refuse-to-pay-back-student-loans/)
Hefling, Kimberly. Associated Press. Apr 13, 2015. (http://hosted.ap.org/dynamic/stories/U/US_CORINTHIAN_100_Q__A?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT)
Queally, Jon. The Antimedia. Apr 1, 2015. (http://theantimedia.org/number-of-people-refusing-to-pay-back-student-loans-swelling/)
EVerest University and Corinthian Colleges are the biggest liars I’ve ever had the displeaure and misfortune to have dealings with. Because of their shady business practices I’ve been screwed over big time! I fought with them for years to get my last loan refunded, as I never attended a day of class for that term, as they had chosen to boot me out in the middle of the second term for not submitting work, due to the fact that I couldn’t submit any work, and their so called tech support was too freaking retarded to know how to fix the problem that prevented me from submitting my work! I wasn’t the only one either, several classmates were having the same issues. Then we couldn’t even email our instructors using the college website, couldn’t email tech support, couldn’t email anyone using the website. So I want to know how to get in touch with the people running this, I want to join!!!!
Everest Uiniversity and Corinthian College are the biggest liars I’ve ever had the misfortune and displeasure of dealing with in my life! They screwed me over BIG time! I want to know how contact these people to join this revolt!
So then if the debt is forgiven, are the degrees that were associated with the debt recalled as well. Be careful which band wagon you jump on, you may lose the paper that you worked for if you jump on the wagon with those who could not make the mark whether or not the school made errors.
I went to everest Brandon online I am stuck with a worthless associates degree and could not finish my bachelor’s degree because my student loans maxed out had I known that would happen I wouldn’t even got into the bachelor’s program at all now I owe 65000 for a degree o couldn’t even finish. The school told me it would cost 30000 to get my bachelor’s degree. Bunch of worthless lies with an unaccredited school. How do I file a complaint or get in one the protest or the Class action lawsuits against this worthless school.
I went to WyoTech (06-07) on a Private Loan, and WyoTech screwed up the loan financing by not certifying the loan in time (they had the paperwork 3 month in advance! I have documentation for this!) I had to re-finance the loan for a MUCH higher interest rate because I had already completed his first 2 months at WyoTech and was therefore responsible for the whole tuition amount.
When I found out about the loan-forgiveness program for WyoTech students, I was advised by one of the Federal Student Loan customer service reps to file a complaint with CFPB (since mine was a private loan). I filed the complaint with CFPB (included all relevant documentation) and this is the response I received: ….(quote) “We reviewed your complaint and couldn’t send it to the company for a response. This could be because WE HAVEN’T REGISTERED THE COMPANY or because your complaint DID NOT INVOLVE A FEDERAL CONSUMER FINANCIAL LAW WITHIN OUR AUTHORITY “(end quote)….
What gives???? They “haven’t registered the company” (which is WyoTech whom THEY are suing)??? And they’re saying that there is NO “Federal Consumer Financial Law” that protects consumers against unfair practices??? The school had the loan papers 3 MONTH IN ADVANCE, and I followed up repeatedly regarding the loan being certified by the school. They ALWAYS assured me that everything was “okay”!!! Then – 2 MONTH AFTER I started classes – I got notified that the bank closed the loan application because WyoTech NEVER certified the loan, and after being FORCED to re-finance it, the payback will be over $30-thousand MORE because of the higher interest rate!!! And there is NO LAW AGAINST this kind of fraud?????
My dad is a co-signer on this loan and we consulted 7 lawyers with this matter. Each of them told us that we would either need 2 different lawyers since I went to WyoTech in PA but we live in WV, or we would need a lawyer that is bonded in BOTH States, and in the end it would cost us more in legal fees than the entire loan amount.
And now I also just read here http://www.forgetstudentloandebt.com/student-loan-relief-programs/federal-student-loan-relief/federal-forgiveness-programs/debt-forgiveness-for-corinthian-everest-heald-wyotech/
that even IF I could MAYBE get the rest of this loan forgiven (I’ve been paying on it since 07), I would get PUNISHED AGAIN by having to pay taxes on whatever remaining amount is forgiven??? And what about my dad as co-signer? Would he then also have to pay taxes on the forgiven amount?
This was a rip-off from the get-go! Where does it end?