The U.S. Department of Justice trustee monitoring Corinthian’s bankruptcy has formed a special committee representing the interests of hundreds of thousands of Corinthian students in negotiations with the school and its unsecured creditors, a group that includes the Department of Education, Bloomberg News reported yesterday. The students say Corinthian duped them into taking on federal loans, and they hope their newfound legal standing will give them leverage to push for debt relief, not only for themselves but for other Corinthian students. Troubles dogged Corinthian Colleges for years, with mounting allegations from state attorneys general and the Education Department that it falsified grades, attendance, and job-placement statistics in reports to regulators and in marketing materials. The Santa Ana, Calif.-based company, which has denied the allegations, in November agreed to sell about half its 107 campuses; on April 26, Corinthian said that it would close its remaining locations, at which about 16,000 students were enrolled.
