About 2,000 Kentucky students are eligible for debt relief after getting loans to take online classes through the for-profit Corinthian Colleges Inc., Attorney General Andy Beshear announced Thursday.
In Kentucky, the company solicited students under the name Everest College and Everest University. Corinthian also marketed its WyoTech career training program throughout the state.
Beshear’s office is notifying eligible students by letter of the cancellation of the federal student loans they used to attend Corinthian schools. Students whose federal loans are canceled will not have to make further payments on the loan and any payments made by the student will be refunded.
“As attorney general, my mission is to protect Kentucky’s families from consumer fraud, especially the ongoing deception by for-profit colleges like Corinthian,” Beshear said. “We must do everything in our power to ensure eligible Kentucky students get all the debt relief from fraudulent Corinthian loans.”
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Federal and state investigators examined Corinthian’s job placement rates, alleging that the company falsified those rates between 2010 and 2014. Currently, Corinthian is not allowed to enroll students and is only remaining open to “teach out” current students.
Beshear’s letter will go to Kentucky students who fall within the U.S. Department of Education’s findings of fraud concerning Corinthian, and who are eligible for a special “streamlined” process to discharge their federal student loans.
Any student, however, who attended Corinthian Colleges or any other school and believes the school lied about job prospects, the transferability of credits or other issues may apply to have his or her federal student loans discharged 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.
Beshear said Kentucky and states across the country are keeping pressure on the federal government to honor their commitment to help students of for-profit colleges. Under former President Barack Obama, the U.S. Department of Education routinely cut off federal loans to for-profit schools with questionable advertising and graduation rates. Under President Donald Trump, education regulators worry that those reforms will be reversed.
On April 24, 2017, Beshear joined with other state attorneys general to send a letter to federal officials expressing concern over the withdrawal of critical student loan servicing reforms.