If you were a student of Corinthian Colleges and you live in New York, you may finally be getting the student loan debt relief you’ve been waiting for.
In fact, as many as 3,000 New York students of now-defunct Corinthian Colleges are eligible for federal student loan forgiveness. However, private student loans are still not eligible for forgiveness.
Here’s what you need to know about the Corinthian Colleges lawsuits and how you can get student loan relief as a former student.
Corinthian Colleges: Bankruptcy and school shutdowns
Corinthian Colleges originally came under fire in 2015. During that time, it sold many locations, filed for bankruptcy, and shuttered its operations. Eventually, 16,000 students at the locations that weren’t sold were eligible for federal student loan forgiveness.
However, that left former Corinthian Colleges students in the dark. Given the sheer size of Corinthian Colleges, far more than 16,000 students needed access to student loan forgiveness options. The Wall Street Journal highlights just how large Corinthian Colleges got:
“At its high point, before a cash crunch threatened to take the company down overnight, Corinthian Colleges employed more than 10,000 people, operating more than 100 campuses attended by 81,000 students.”
But as far-reaching as the school was, it became apparent that it couldn’t stay alive financially.
Federal funding kept it going long enough to sell as many of locations as it could. That came to a grinding halt when the last willing buyer for the rest of the locations decided not to move forward with the deal. Once the last buyer was out, the remaining schools were closed down.
A call for forgiveness from Corinthian Colleges alumni
While students enrolled at Corinthian Colleges during the school’s bankruptcy wanted their loans forgiven, alumni did as well. According to Bloomberg, there have been other serious allegations brought against Corinthian Colleges:
“[…] the Education Department determined that Corinthian defrauded [students] into taking out federal loans by advertising false job placement rates for its many career programs. Department officials concluded that Corinthian engaged in ‘widespread placement rate fraud’ for almost 800 programs at nearly every one of its more than 100 U.S. campuses.”
Students who felt manipulated into enrolling in Corinthian Colleges wanted their money back. Unfortunately, this is one of the many dangers of attending for-profit colleges and universities.
Further, Corinthian Colleges students have been able to apply to get their money back for about a year now with the U.S. Department of Education.
But that doesn’t mean every eligible person knew about it. According to Bloomberg, students in default may have had an especially hard time learning all their options:
“…as any as 80,000 of [Corinthian alumni] are in default and battling draconian collection efforts – wage garnishments, the seizure of tax refunds and federal benefits – on behalf of the Education and Treasury departments. Others are paying they aren’t aware they don’t owe.”
Just because you might be eligible for Corinthian Colleges loan forgiveness doesn’t mean you’ll receive notice right away. The only way to get your Corinthian Colleges loans forgiven is to apply for it.
Why NY students are eligible for Corinthian Colleges loan forgiveness
New Yorkers aren’t the only ones eligible for Corinthian Colleges loan forgiveness.
According to New York Business Journal, New York Attorney General Eric Schneiderman is joining a larger awareness effort by informing Corinthian Colleges students of “proper loan cancellation protocol.”
Essentially, if a student’s application with the U.S. Department of Education is approved, “the students’ loans will be canceled and any payments already made will be refunded.”
So if you attended one of the Corinthian Colleges, apply to have your federal loans forgiven. You lose nothing by trying.
Know your rights with federal student loan forgiveness
The best way to know your rights is to stay on top of them. Laws are changing all the time, including the ones around the Corinthian Colleges lawsuits.
The best thing you can do if you have federal student loans and you attended Corinthian Colleges is to touch base with Federal Student Aid office.
Through this resource, you can also apply for various types of forgiveness or income-driven repayment plans. Finally, it’s also a great place to generally learn about the options around your federal loans.
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1 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 3.89% APR (with Auto Pay) to 6.97% APR (with Auto Pay). Variable rate loan rates range from 2.47% APR (with Auto Pay) to 6.23% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of Month/Day/Year, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 08/21/18. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at email@example.com, or call 888-601-2801 for more information on ourstudent loan refinance product.
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2 Important Disclosures for Laurel Road.
Laurel Road Disclosures
Savings example: average savings calculated based on single loans refinanced from 9/2013 to 12/2017 where borrowers’ previous rates were disclosed. Assumes same loan terms for previous and refinanced loans, and payments made to maturity with no prepayments. Actual savings for individual loans vary based on loan balance, interest rates, and other factors.
Application detail: 5 minutes indicates typical time it takes to complete application with applicant information readily available. It does not include time taken to provide underwriting decision or funding of the loan.
Instant rates mean a delivery of personalized rates for those individuals who provide sufficient information to return a rate. For instant rates a soft credit pull will be conducted, which will not affect your credit score. To proceed with an application, a hard credit pull will be required, which may affect your credit score.
Total savings calculated by aggregating individual average savings across total borrower population from 9/2013 to 12/2017. Individual average savings calculation based on single loans refinanced from 9/2013 to 12/2017 where borrowers’ previous rates were provided. Assumes same loan terms for previous and refinanced loans, and payments made to maturity with no prepayments. Actual savings for individual loans vary based on loan balance, interest rates, and other factors.
3 Important Disclosures for SoFi.
4 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
5 Important Disclosures for CommonBond.
6 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
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