Attorneys representing Corinthian Colleges students announced Monday they have reached an agreement with the Department of Education intended to provide tuition debt relief as the for-profit educational company goes through bankruptcy.
A four-month delay has been imposed on collection tuition debt as the students and the Department of Education work on a long-term relief plan.
“While, in a perfectly just legal system, we would be eagerly announcing inclusive and sweeping relief, this agreement is an important step in the right direction as we work through a complex and massive bankruptcy to ensure that the rights and interests of Corinthian’s former students are protected,” said attorney Scott Gautier of Robins Kaplan LLP, which is helping to legally represent students.
“We are hopeful that today’s announcement sets the stage for greater relief on a collective basis in the not so distant future.”
Corinthian Schools Inc., which once had 107 campuses, shut down all of its schools and declared bankruptcy in May following investigations by Attorney General Kamala Harris.
The Department of Education announced in June that students of any college that shut down can have their federal student loans forgiven if they were enrolled at the time or withdrew within 120 days of the closing date.
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.
— Wire reports
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