Tens of thousands of borrowers just won the right to get relief on their student loans, following the conclusion of an investigation into defunct for-profit colleges, Bloomberg News reported yesterday. California Attorney General Kamala Harris and the U.S. Department of Education yesterday announced the end of a probe into Corinthian Colleges, a company that once owned more than 100 for-profit colleges and filed for bankruptcy in May. “Corinthian preyed on vulnerable students who are now buried under mountains of student debt,” said Attorney General Harris. The investigation found that the company had lied to students for years about their chances of getting a job after graduating from two of its chains, Wyotech and Everest University. Now 85,000 students who went to the schools in California, or took courses in Everest's online program, will be allowed to apply for loan forgiveness through the Education Department. Read more.
To read more on student debts and bankruptcy, be sure to pick up a copy of ABI's Graduating with Debt: Student Loans under the Bankruptcy Code.
