Commentary: Attorney General Hector Balderas began reaching out to notify hundreds of New Mexico residents who attended schools operated by Corinthian Colleges, Inc. – including Everest Institute, Everest College, Everest University, Heald College, and Wyotech – that they are eligible for cancellation of their federal student loans used to attend those schools. If a student’s federal loan is cancelled, the student will make no more payments on the loan, and any payments already made will be refunded.
“Nearly 600 New Mexicans will have their student loans cancelled and their payments refunded thanks to our efforts to hold for-profit education company Corinthian Colleges, Inc. accountable,” Attorney General Balderas said. “We will continue our crackdown on predatory, for-profit colleges that prey on the hopes and dreams of New Mexico families.”
Approximately 571 New Mexico residents are eligible for federal student loan cancellation and will receive a letter from claims administrator Epiq explaining the relief available and enclosing a short application that must be filed with the U.S. Department of Education.
After intense scrutiny by Attorney General Balderas and various government entities, for-profit Corinthian Colleges abruptly ceased operations in 2015, transferring some of its campuses to a non-profit called Zenith Education Group. The U.S. Department of Education then found that while it was operating, Corinthian Colleges made widespread misrepresentations between 2010 and 2014 about post-graduation employment rates at its campuses in New Mexico, and elsewhere across the nation. Lists of the affected campuses, programs, and dates of enrollment are available at https://www.StudentAid.gov/ev-wy-findingsand at https://www.StudentAid.gov/heald-findings. Students who first enrolled in the identified campuses and programs during the specified time periods are eligible for streamlined discharge of their federal student loans.
The Attorney General’s outreach will be sent to students who fall within the U.S. Department of Education’s findings of fraud discussed above, and who are eligible for a special “streamlined” process to discharge their federal student loans. However, any student who attended Corinthian Colleges and believes that the school lied about job prospects, the transferability of credits, or other issues may apply to have their federal student loans canceled using the Department of Education’s universal discharge application at https://borrowerdischarge.ed.gov. More information is available at https://studentaid.ed.gov/borrower-defense.
Borrowers should beware of student loan scams. You can apply for loan forgiveness, or get information on loan forgiveness, for FREE through the U.S. Department of Education. The U.S. Department of Education never charges application or maintenance fees, so if you’re asked to pay, walk away.
It may take time for the U.S. Dept. of Education to process applications, so anyone who applies for loan discharge should continue making payments on the affected loans until informed by the U.S. Dept. of Education or his loan servicer that his federal loans are in forbearance while his application is pending or that his loans have been cancelled.
If you have questions about the Office of the Attorney General’s outreach to former Corinthian Colleges students, please call toll free 1-844-255-9210. Students can also call the U.S. Department of Education hotline at1-855-279-6207 or e-mail questions about discharge of their federal student loans to FSAOperations@ed.gov.