United States

AGs Ask Dept. of Ed. to Forgive Loan Debt for Students Defrauded by Corinthian Colleges

Thousands of local college students approved for loan forgiveness may have to start repaying their debts.

The for-profit company Corinthian Colleges filed for bankruptcy and shut down in 2015.

The U.S. Department of Education found evidence Corinthian inflated its job placement rates.

About 27,000 students who were defrauded have been approved for loan forgiveness but have yet to see their loans discharged. Some of those students may have to restart payments on their debts.

Attorneys general from Virginia, Maryland and D.C. joined 17 other states in sending a letter to U.S. Secretary of Education Betsy Devos urging the Department of Education to follow through on its promise to erase those debts. They asked for details on what the department is doing to rectify the growing backlog of applications and to provide a timeframe for discharge of the student debt.

“The process for borrowers with claims approved to obtain discharge is underway, and we are working with servicers to get these loans discharged as expeditiously as possible,” Department of Education press secretary Liz Hill said. “Some borrowers should expect to obtain discharges within the next few weeks.”

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