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Coalition Urges Loan Debt Cancellation for Former Corinthian Students

U.S. Sen. Dick Durbin of Illinois, Rep. Joe Kennedy III of Massachusetts, Massachusetts attorney general Maura Healey, the Debt Collective organization and others on Monday joined the Project on Predatory Student Lending to launch a public awareness campaign urging eligible students of former Corinthian Colleges to apply to have the Department of Education cancel their debts.

The coalition also forcefully urged the department to cancel the debt for Corinthian students.

The Project has created a web page with resources to tell former students of Corinthian-owned schools whether they are eligible to apply, and which form they should fill out to apply for loan cancellation.

Earlier this year, a major court ruling invalidated the Department of Education’s policy of partially denying loan cancellation to certain former Corinthian Colleges students and ordered the department to not collect from certain Corinthian students who have applied to have their loans cancelled. There are thousands of former Corinthian students who are eligible for relief using a simple form, but who have not applied for loan cancellation.

β€œFor cheated Corinthian students who faced the added indignity of being denied the loan cancellation they are due by law, the ruling provided immediate and necessary relief,” said Project on Predatory Student Lending director Toby Merrill. β€œWe will keep pushing the Department of Education to completely cancel all Corinthian debt. As we wait for the Department to do the right thing, there are thousands of former Corinthian students who are unnecessarily facing collections and financial hardship, but if they apply to have their debts cancelled, collections must stop.”

The case, Calvillo Manriquez v. DeVos, is a putative class action. Four former Corinthian students are seeking to represent a class of Corinthian borrowers nationwide who enrolled at a Corinthian-owned school during dates that vary by campus and program.

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