Source: Melissa Korn, Wall Street Journal, August 17, 2017
Former Corinthian Colleges Inc. students who took out 46,000 private loans through the now-defunct school will be eligible for $192 million in loan relief, based on a settlement announced Thursday by 13 state attorneys general and the Consumer Financial Protection Bureau. The settlement is subject to approval by a federal court in Oregon that is overseeing the receivership of the investment firm that owned the loans, Aequitas Capital Management LLC. Roughly 41,000 students took out what Corinthian called Genesis private loans, coordinated through Aequitas’s Campus Student Funding affiliate. …
Corinthian Colleges Loses Federal Lawsuit As Education Department Faces Reckoning
Source: Shahien Nasiripour, Huffington Post, October 28, 2015
Defunct for-profit college chain Corinthian Colleges Inc. violated federal law by using false job placement rates to deceive 115,111 former students into taking out student loans, a federal district court judge ruled on Tuesday. In a lawsuit brought last year, the Consumer Financial Protection Bureau alleged that Corinthian duped prospective students into enrolling and taking out loans by falsely advertising future job prospects. The company, which declared bankruptcy in May, operated for-profit schools under the Everest, Heald and Wyotech brands and had previously denied wrongdoing. The ruling by Judge Gary Feinerman in Chicago could force the Department of Education to forgive the former students’ federal student debt, thanks to a provision in federal law that gives student debtors the right to apply for total debt forgiveness if schools mislead them into taking out federal student loans. Former Corinthian students have taken out nearly $4 billion in loans from the Education Department over the last five years.
Corinthian Colleges Secretly Funded D.C. Think Tanks, Dark Money Election Efforts
Source: Lee Fang, The Intercept, May 4, 2015
….The filing doesn’t list amounts, but shows that Corinthian made payments to Crossroads G.P.S., a group co-founded by Karl Rove that has raised over $300 million to elect Republican members of Congress through campaign advertising. Crossroads G.P.S., a 501(c)(4) nonprofit, does not disclose any of its donors…. APCO Worldwide, a lobbying firm, is among the Corinthian creditors, though the firm never registered to represent Corinthian under the Lobbying Disclosure Act. The listing reveals a number of payments to influential D.C. groups that have battled regulations on the for-profit college industry. The U.S. Chamber of Commerce is listed multiple times as a Corinthian creditor. The Chamber has run campaign advertisements on behalf of opponents of the Department of Education’s “gainful employment” regulation, which would measure the performance of vocational programs. The Chamber made defeating the rules a top priority. The American Legislative Exchange Council, a nonprofit that helps corporate interests draft model legislation, is listed as a creditor. As Republic Report reported, although for-profit colleges are far more expensive for programs offered by community colleges and other public institutions, ALEC drafted a resolution calling for state officials to “recognize the value of for-profit providers.” Another gainful employment regulation opponent, the American Enterprise Institute, is listed as a Corinthian creditor. AEI scholars have repeatedly attacked the rules, calling them an example of the Obama administration’s “crusade against for-profit colleges.” Last October, Andrew Kelly, AEI’s resident scholar on higher education reform, specifically defended Corinthian and criticized the “Obama administration’s bloodlust for such schools.”….