AG Fox Announces Former Corinthian College Students Eligible for Federal Student Loan Cancellation

Attorney General Tim Fox, along with Attorneys General of other states and the District of Columbia, is reaching out to notify Montana 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 121 Montana residents who attended Everest Institute, Everest College, Everest University, and Heald College are eligible for federal student loan cancellation and will receive a letter this week from Attorney General Tim Fox explaining the relief available along with a short application that must be filed with the U.S. Department of Education.   A letter and information concerning eligible Wyotech students will be sent in the coming months.

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 on-line and at its bricks and mortar campuses 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.

“Help is available to forgive student loan debt for Montanans who attended Corinthian Colleges,” Attorney General Tim Fox said.  “These students enrolled in Corinthian College’s courses and paid tuition fully expecting to receive an education that would enable them to easily obtain the careers they dreamed of.  Instead, they found the college had misrepresented the employment placement rates of its graduates.  I encourage former Corinthian College students in Montana to pay close attention to their mail this week for my letter, which outlines the steps they can take to get their federal student loans discharged.”

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.

More information about outreach to former Corinthian Colleges students can be found at http://corinthianoutreach.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 [email protected].  Students can also contact the Montana Department of Justice’s Office of Consumer Protection at (800) 481-6896 or (406) 444-4500 for assistance with the application.

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.

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 his loan servicer that his federal loans are in forbearance while his application is pending or that his loans have been cancelled.

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