In March, a California Superior Court judge ruled Corinthian Colleges, a for-profit company offering postsecondary education through its Heald, Everest and WyoTech schools, had misrepresented its programs, job placement rates, and debt collection practices. The company, which filed for bankruptcy in May of 2015 and is now defunct, was levied with more than $1.1 billion in fines and restitution.
Jubilee USA works to stop predatory student lending practices and supports policies that promote responsible student lending and borrowing.
“Predatory financial behavior should not be part of our higher education system,” said Andrew Hanauer, Jubilee USA’s Campaigns Director. "Promoting responsible student lending and borrowing isn't just good for our students, it benefits our entire economy."
In response to the ruling and the closure of Corinthian campuses, the U.S. Department of Education in June proposed new regulations that would allow student borrowers relief from repayment of loans taken based on misleading information from a school or university. A final rule is expected later in 2016.
The Dept. of Education also established the Student Aid Enforcement Unit to resolve student claims of misrepresentation by higher education institutions.
Read the lawsuit’s timeline (2013-2016): http://www.publiccounsel.org/t
Corinthian Colleges: https://oag.ca.gov/consumers/g
CA Attorney General’s Statements: https://oag.ca.gov/news/press-
Student Aid Enforcement Unit: http://www.ed.gov/news/press-r