Former Corinthian College Students May Be Able to Obtain Student Loan Forgiveness
More than 10,000 North Carolinians may be eligible for loan forgiveness
North Carolina Attorney General Roy Cooper is encouraging more than 10,000 North Carolinians who took Corinthian College classes to apply for federal student loan forgiveness.
"Many students aiming for a brighter future didn't get the education they worked and paid for, or the job opportunities they believed they would earn," Cooper said. "North Carolinians who attended a Corinthian school should take this opportunity to get their student loans forgiven."
The for-profit institution, which operated a chain of schools across the country, closed in April 2015 after investigations conducted by the North Carolina Attorney General's Office, attorneys general in other states, and the federal government. The institution operated under the names Everest College, Everest Institute, Everest University, Heald College, and WyoTech.
Although there were no campuses located in North Carolina, the North Carolina Attorney General's investigation discovered that thousands of North Carolinians had taken classes at Corinthian campuses located in other states or online and had paid for them by taking out federal student loans.
The U.S. Department of Education (DOE) informed the North Carolina Attorney General's Office that as many as 10,684 such North Carolina residents could be eligible to receive forgiveness of their federal student loans. This figure includes more than 1,000 students in the Triad, more than 800 in the Charlotte area, roughly 700 in the Triangle, and more than 500 in the area in and around Fayetteville.
Out of these potentially eligible students, more than 8,000 can apply through a streamlined process to get relief more quickly. Students are eligible for such streamlined relief if they were enrolled in Corinthian programs whose graduate job placement rates were falsely inflated by Corinthian. In order to participate in the faster process, students must file documentation as proof that they attended one such program stating that they had relied on the job placement rate provided to them by Corinthian.
On average, former Corinthian students who were able to obtain forgiveness of their student loans have received roughly $19,000 in loan relief. However, as of June 29, 2016, the DOE reported that only 406 North Carolinians out of the more than 10,000 who are eligible had applied for student loan forgiveness.
Cooper is urging North Carolinians who want to earn a degree or gain new career skills to consider their local community college first.
"Our top-notch community colleges offer a range of degrees in fields similar to many for-profit schools, but at [a] fraction of the cost," Cooper said.