FOR IMMEDIATE RELEASE
March 18, 2015
CONTACT: Natalia Abrams
646-820-8037 or 310-365-1069 – natalia@studentdebtcrisis.org

Student Debt Crisis’ Statement on the Department of Education Announcing Action on Corinthian Colleges Shutdown.

Today the Department of Education announced various steps that it will take to alleviate the burden on Corinthian College (Everest, Heald, WyoTech) students. Current and former students who were enrolled at a closed Corinthian campus as of June 20, 2014 can now apply for a refund. This is a 245 day increase from the current Closed School Discharge rule. In addition, students who can prove they were defrauded by their school – for example Heald College students who were lied to about job placement rates- may be entitled to a refund even if their school was not closed.

While the announcement today is a step in the right direction, we are hesitant to applaud the Department of Education until we see these rules in practice, and most importantly until we hear directly from Corinthian students.

“It is promising that the Department has taken on this issue, however we are disheartened by their desire to quickly pass the buck to a dysfunctional Congress. The Department of Education should embrace its expertise on the issue of student loan debt and seize the opportunity to lead in creating solutions. Instead, the Department chose to deflect its responsibility to a Congress that has proven its unwillingness to act on student loan debt.”

– Natalia Abrams, Executive Director of Student Debt Crisis

We implore  the Department of Education to exhaust ALL possible measures to help victims of for-profit colleges and borrowers struggling to repay their student debt.

The struggle Corinthian students faced forced the Department to analyze its “defense to repayment” procedures and to consider expanding student loan refunds. This has opened the door for Corinthian students, but we insist that the Department of Education create an easily accessible pathway for all borrowers to utilize “defense to repayment” so that it benefits as many Americans as possible.

To read the full statement from the Department of Education click here – http://studentdebtcrisis.org/department-of-ed-corinthian-announcement/

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