Attorney General Racine Notifies Nearly 400 District Consumers About Student Debt Relief Eligibility

Federal Agency May Forgive Loans to Students Defrauded by Corinthian Colleges

WASHINGTON, D. C. – Attorney General Karl A. Racine today announced that the Office of the Attorney General’s (OAG) Office of Consumer Protection has begun contacting nearly 400 former Corinthian Colleges students in the District who may be eligible for debt forgiveness. The letters from OAG will advise former Corinthian students of their rights to seek discharge of their loans after a nationwide investigation into the for-profit school determined that some students were defrauded.

According to the U.S. Department of Education (DOE), former students who attended Corinthian’s Everest Institute, Everest College, Everest University and WyoTech may have been subjected to misleading job placement claims when they enrolled in their study programs. DOE has determined that those who were defrauded by the for-profit education company are eligible to have their student loans discharged. The decision follows investigations by the DOE and state attorneys general, which revealed widespread misrepresentations to prospective students, including misleading claims concerning the likelihood that students would be gainfully employed upon graduation.

“The Department of Education’s loan forgiveness is an important step in helping District consumers defrauded by Corinthian Colleges move forward. Our office will continue to identify and educate victims of this scam and victims of other predatory colleges about their rights,” said Attorney General Racine.

Because the relief available to students may amount to thousands or tens of thousands of dollars, OAG is individually reaching out to former Corinthian students encouraging them to contact DOE to determine if they are eligible for relief from their federal student loans. Consumers who want more information about the relief being offered to former Corinthian students may visit the Office of the Attorney General’s website at http://oag.dc.gov/page/corinthian-colleges-student-loan-relief-eligibility.

OAG also recently launched a Student Loan Resources page that includes tools consumers can use to better understand their student loans and information on how they may consolidate or seek relief from their loans through programs offered by DOE. For more information: http://oag.dc.gov/page/student-loan-repayment-resources.

Consumers with complaints about for-profit schools or other consumer services may call the OAG Consumer Protection Hotline at (202) 442-9828.