Feds Ok Debt Relief for Some Corinthian College Students

June 11, 2015 by · Leave a Comment 

Corinthian College students will be eligible for debt relief as the Santa Ana-based, for-profit educator struggles through bankruptcy, the U.S. Department of Education announced Monday.

Corinthian Schools Inc. shut down all of its schools and declared bankruptcy last month following investigations by Attorney General Kamala Harris.

Students of any college that shuts down can have their federal student loans forgiven if they were enrolled at the time or withdrew within 120 days of the closing date, according to the Department of Education.

Federal officials are expanding that eligibility to Corinthian students dating back to June 20, 2014. Students who believe they were victims of fraud can apply for relief, but in the Corinthian case officials are poised to make it easier for those students to get debt relief.

The Attorney General’s Office sued Corinthian two years ago, alleging that the company targeted its advertising toward low-income students with inflated claims of job placement rates following graduating and training.

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