11.17.15

Durbin: Education Department to Provide Additional Relief to Corinthian Students

Decision could provide expedited relief to Illinois students who attended Everest University online programs

[WASHINGTON, D.C.] – U.S. Senator Dick Durbin (D-IL) today commended the announcement of additional expedited federal student loan relief to students of the now bankrupt Corinthian Colleges, Inc. following a joint investigation between the Department of Education and California Attorney General Kamala Harris.  The investigation found that Corinthian Colleges, Inc.’s Everest and Wyotech locations in California and online Everest University programs misrepresented their placement rates to prospective and current students.  Illinois students who attended one of Corinthian’s Everest University online programs may be eligible for expedited relief based on today’s announcement. 

   

Today’s announcement follows a meeting between Durbin, Illinois Attorney General Lisa Madigan, Joseph Smith, Special Master appointed by the Department of Education to oversee the federal student debt relief process for former Corinthian students, and several students who attended the school’s Illinois campuses and remain buried in federal student loan debt.  Additional information on their November 6 meeting can be found on Durbin’s WEBSITE.

   

“The evidence is clear: for-profit Corinthian Colleges defrauded the federal government and its students.  In just one instance revealed today by the Department of Education, Corinthian claimed one of its automotive programs had a 100% job placement rate when in reality, the college placed zero students,” said Durbin.  “Expedited relief to students of these schools – including some in Illinois who attended Everest University online – is welcome news.”

   

In October, a federal district court judge ordered the bankrupt Corinthian Colleges, Inc. to repay $531 million to the now-shuttered school’s former students. The decision came in a lawsuit brought by the Consumer Financial Protection Bureau (CFPB) against Corinthian Colleges, Inc. in the U.S. District Court for the Northern District of Illinois.  In the lawsuit, the CFPB alleged that Corinthian engaged in illegal deceptive practices including making misrepresentations about prospective students’ career opportunities, presenting falsified and overstated job placement rates, and misrepresenting the availability and utility of its career services. 

   

In December 2013, Durbin sent a letter to the Secretary of Education, Arne Duncan, asking him to investigate Corinthian Colleges, Inc. and their fraudulent marketing practices which included a subsidy program for employers to hire graduates temporarily and inflating job placement rates to lure new students to enroll.  In February, following an investigation, the Department of Education took action against Corinthian Colleges, Inc. by denying the company’s pending new program applications and increased scrutiny in light of deceptive job placement practices.