Corinthian Colleges Student Loan Debt Forgiveness

Corinthian Colleges Loans Are Being Forgiven!

Thanks in part to the incredibly brave efforts of the Corinthian 15 (now rebranded “The Corinthian Collective since they’ve grown to 1,500+ members!), President Obama’s Administration decided to forgive all student loan debt related to Corinthian colleges courses.

This decision was made in 2016, and Corinthian Colleges Forgiveness remains fully-funded for 2017. However, it is possible that President Trump’s Student Loan Debt Plan could wipe out these incredible forgiveness benefits, so if you think you qualify for the loan discharge, then you need to apply for it immediately!

The Corinthian Colleges Student Loan Forgiveness Program offers forgiveness to any student loans that were taken out to pay for tuition and fees at any Corinthian-affiliated school, including:

  • Everest College
  • Heald College
  • WyoTech (Wyoming Technical Institute)

The Corinthian Colleges Student Loan Debt Forgiveness Program was officially announced by President Obama on June 8th, 2016, and has the capability of paying out a total of $3.6 BILLION in forgiveness benefits, but you should be aware that these benefits do come with some eligibility restrictions.

This post outlines the details of the plan, walking you through each step in the process of determining whether or not you qualify for the benefit, as well as explaining how to complete the application process for claiming your benefits.



Why Are Corinthian Loans Being Forgiven?

Corinthian Colleges, Inc. got hammered by federal enforcement actions during a stretch between 2015 and 2016, including being hit with all sorts of penalties for misleading students about job placement rates and pressuring them into taking out massive student loans.

As a result of those enforcement actions and a slowdown in new student signups, Corinthian Colleges was in a world of financial trouble and ended up having to sell off a bunch of its schools to Zenith Education Group.

At first, it seemed like the company could pull through and that Corinthian-affiliated schools would continue to operate, but they abruptly announced they were closing the rest of their schools (about 30 more campuses) on April 27th, 2015.


What Happened to the Students?

With many thousands of students still enrolled in Corinthian-affiliated programs, and many of them saddled with enormous student loans, a financial crisis was sure to ensue.

First came the protests, including the Corinthian 15 strikers group, who publicly pledged to refuse to pay back their Corinthian-affiliated student loan debt.

Next came tons of media attention and further pressure to offer some form of real financial assistance to anyone impacted by the school closures.

And finally, there was a happy ending to the story, when on June 8th, 2015, the Department of Education announced that they would support many of the students who got caught up in Corinthian’s collapse.

This promise became the plan for the Corinthian Colleges Student Loan Forgiveness Program, which is currently not only one of the best Federal Student Loan Forgiveness Programs on offer, but also covers Private Student Loan Forgiveness as well.

In fact, virtually all students caught up in the closure of Corinthian schools will qualify for at least some form of financial assistance, with some borrowers receiving a literal 100% loan discharge, and even refunds for payments they’d previously made.


How Does Corinthian Colleges Debt Forgiveness Work?

The rules are pretty simple. To qualify for Corinthian colleges loan forgiveness benefits, you must satisfy one of the two following eligibility conditions:

    Two Types of Corinthian Forgiveness Benefits

  1. Closed School Relief – You qualify for the Closed School Student Loan Relief Program if you attended one of the Corinthian schools that closed on April 27th, 2015
  2. Defrauded Student Relief – You qualify for the Defrauded Student Relief Program (the Borrowers Defense Against Repayment Program) if you were defrauded (lied to, scammed, etc.) by a Corinthian school that you went to, or you believe that the school violated state laws (whether or not it was shut down)

The good news is that virtually everybody who attended a Corinthian school in the past several years is going to qualify for one of the above programs.

The bad news is that only the first program makes it easy to qualify for loan forgiveness, because the second program requires some complicated legal writing, and a detailed application process.

Closed School Relief

The first way to qualify for Corinthian forgiveness benefits is via the Closed School Relief program, which is about as cut-and-dry as it gets; if you went to one of the Corinthian schools that was shut on April 27th, the you’re going to qualify for forgiveness.

That makes this one of the simplest, easiest, best student loan debt forgiveness programs on the market, since it doesn’t require a ton of background work, consulting fees from attorneys or student loan experts, or much actual time spend researching and writing up explanations of what happened to you.

If you were a student at a Corinthian school when the school shut down, then you’ll qualify for having your loans discharged. Pretty awesome right?

I’ll explain the details to how it works below.


Defrauded Student Relief

The more complicated path to forgiveness is the second program listed above, called the Defrauded Student Relief program, which is far more nuanced, since it requires proving to the Federal Government that Corinthian Colleges lied to you, essentially doing false advertising, in order to get you to sign up for one of their programs.

Maybe Corinthian promised that you’d be able to get a great job, pay back your student loans quickly, or make a huge salary by investing time and money into their education program? Maybe they promised something else that they didn’t deliver on? As long as you can show that they said something they shouldn’t have, then you should qualify for forgiveness benefits too.

But, it’s not necessarily easy to prove that you were defrauded, since you’ll have to write a Borrowers Defense Against Repayment letter (which is a legal document), to prove that Corinthian violated some state or Federal law, and that your resulting loan should thus be discharged in full.

Scroll down to the section below called Defrauded Student Relief for advice on how to prepare your letter and qualify for this forgiveness benefit.

Two Options for Dealing with the Corinthian Closure

Keep in mind that you don’t have to pursue a student loan debt discharge if you attended Corinthian Colleges and you want to retain the credits you earned while in school with them.

It is possible to instead apply to have your credits transferred to another University, which lets you retain whatever credits you’ve previously earned, but which will also require you to keep paying back the student loans you took out to pay for those credits.

The reality of the situation is that you’ve got two options for dealing with the Corinthian closures, which are:

  1. You can apply for a Closed School Student Loan Discharge
  2. You can transfer the credits you earned to another college or university and continue your higher education pursuit in a similar program

If you choose to take the Closed School Discharge route, then you’ll be eligible to receive up to 100% forgiveness for any federal Direct Loans, FFEL Program Loans or Federal Perkins Loans that you took to attend the school.

But that’s not all, because not only will you get the rest of your remaining student loan debt wiped out, but you’ll also receive reimbursement for whatever amount of money you’ve already paid the Federal Government on these loans.

What Should You Do?

Personally, my suggestion is to take the relief benefit, especially if you think you’ll ever have trouble paying back the student loans you borrowed.

There’s a couple caveats to the way that Closed School Discharges work though, so you’ll need to keep the following in mind. You won’t be able to qualify for the Corinthian Colleges Closed School Discharge Program if:

  • You finished your program at a Corinthian school
  • You already transferred your Corinthian credits to another school in a similar program
  • You were not attending the school when it closed, or you withdrew from Corinthian before June 20th, 2014

Which Corinthian Schools Closed on April 27th, 2015?

Here’s a list of the schools that shut down on April 27th, 2015:

Corinthian SchoolLocation
Everest CollegeAlhambra, CA
Everest CollegeAnaheim, CA
Everest CollegeGardena, CA
Everest CollegeOntario, CA (1460 S. Milliken Ave)
Everest CollegeSan Bernardino, CA
Everest CollegeSanta Ana, CA
Everest CollegeOntario, CA (1819 South Excise Ave)
Everest CollegeRochester, NY
Everest CollegeReseda, CA
Everest CollegePhoenix, AZ
Everest CollegeMesa, AZ
Everest CollegeTorrance, CA
Heald CollegeSan Francisco, CA
Heald College - HonoluluHonolulu, HI
Heald CollegePortland, OR
Heald College - Kaneoche MCBKaneohe, HI
Heald College - ConcordConcord, CA
Heald College - MilpitasMilpitas, CA
Heald College - HaywardHayward, CA
Heald College - ModestoSalida, CA
Heald College - RosevilleRoseville, CA
Heald College - SalinasSalinas, CA
Heald College - StocktonStockton, CA
Heald College - Rancho CordovaRancho Cordova, CA
Heald College - FresnoFresno, CA (255 West Bullard)
Heald College - Fresno SatelliteFresno, CA (255 East River Park Circle)
WyoTechFremont, CA
WyoTechLong Beach, CA
WyoTechLos Angeles, CA
WyoTechCity of Industry, CA

Again, it’s pretty simple. If you were a student at any of the schools listed above on or after June 20th, 2014, then you’re going to qualify for the Corinthian Closed School Discharge Program.


How to Apply for a Corinthian Colleges Closed School Relief Discharge?

That’s the easy part. Do one of the following:

  1. Download and fill out the Closed School Loan Discharge Application form, then return it to whoever is servicing your loan (whoever you send monthly payments to)
  2. Contact whoever is servicing your loan and ask them what you need to do. Tell them that you know you qualify for the Closed School Relief discharge, and they will be legally obligated to walk you through the application process

If you aren’t sure who your loan servicer is, then to to the My Federal Student Aid website and login. This system will tell you. Or, call 1-800-4-FED-AID.

This is an awesome opportunity for anyone who went to a Corinthian school during this time period, but didn’t finish their program and who isn’t interested in continuing on at another school.

If you fall into that category of people, then you’d better take action now, because there’s not way to be certain that President Trump’s impending student loan reforms won’t wipe out these benefits entirely.


Defrauded Student Relief

This is a much more complicated process than the Closed School Relief benefit, since it will require some legal work on your behalf.

To qualify for the Defrauded Student Relief benefit, you’re going to have to use something called the “Borrower Defense to Repayment” provision, which is complicated, but here’s how it works:

The Borrower’s Defense Against Repayment provision allows you to discharge student loans if you can prove that the school committed fraud by either doing something or failing to do something that violated state or Federal laws, and that this violation is somehow related to your loans or the educational services you took loans out to finance.

Here’s the beauty of the Borrower’s Defense Against Repayment Program – you can use this for any school – not just Corinthian colleges schools – whether or not the school has closed, and whether or not you completed their educational program.

That means that you can get out of student loan debt, at no cost to yourself, by proving that the school defrauded you in some way, and that your student loans should thus be voided and entirely discharged.


The DOE Response to a Flood of Borrowers Defense Against Repayment Letters

Because the Department of Education thinks there will be so many people trying to do this, they’ve made it easier than ever before to get loans discharged under the Defense Against Repayment Provision.

To apply for the benefit, the Department of Education initially required that people send an email or a letter including all of the following items (at a minimum – the more detail you provide, the better):

    Things to Include In Your Defense Against Repayment Letter

  1. State, in writing, that you “wish to assert a borrower defense to repayment based on state law
  2. Your first, middle and last name
  3. Your date of birth
  4. The last 4 digits of your Social Security number
  5. Your home address
  6. Your telephone number
  7. Your email address
  8. The name and location (address) of the school you attended
  9. The name of the program of study you were attending (basically your major)
  10. The degree, certificate, or other credential that you earned, or were seeking (Masters in XXX, Certificate of XXX, Bachelors in XXX, etc.)
  11. Your dates of enrollment at the school
  12. Documentation confirming your school, program of study and dates of enrollment (use transcripts or registration documents)
  13. Details about how the school defrauded you, including things like: the state and applicable law or cause of action, specific acts of alleged misconduct, how the alleged misconduct affected your decision to attend the school and take out loans to pay for the costs, the injury you’ve suffered as a result of the school’s misconduct, any other information that will help your cause

But I’ve got good news, because in 2017 you don’t have to write this letter from scratch anymore, since the Department of Education has finally released their official Borrowers Defense Against Repayment Online Application Form, which you can find here.

As you’re filling this application out, you’ll find that almost everything is pretty straightforward, except the part that asked you to detail how the school defrauded you.

This is where the rubber meets the road, and where many people turn to attorneys or student loan debt relief agencies for help, since your explanation needs to be air-tight in order to ensure that you’ll receive the discharge you’re applying for.

What you need to do in this part of the process is explain how the school broke the law in order to convince you to sign up for their higher education program.

If they promised anything about guaranteed income or employment, then you can probably use that. For example, if they said you’d earn more money after graduating, they’re screwed.

If they said you would be able to find a management position, they’re screwed. It’s things like that – promises of employment or income – that get the schools in hot water.

Should I Hire Someone To Help Prepare My Borrowers Defense Letter?

Personally, I would pay one of the expert student loan relief agencies to help draft your letter, unless you’ve got some detailed experience doing stuff like this.

When it comes to receiving a Borrowers Defense Against Repayment Discharge, you really do only get one chance at an approval, so screwing up this part of the process means being stuck with your student loan debt forever.

My advice is to consult with the Student Loan Relief Helpline, which is my favorite student loan debt relief agency, who will research your situation, find out how to frame your letter, write the entire thing for you, and handle all the paperwork required in the process as well.

And while you will have to pay them for this service, the cost is minimal compared to the prospect of paying off the entirety of your student loans, especially if you consider that cost as an investment in ensuring that you get your Borrowers Defense Against Repayment Letter approved for a discharge.

Your first call to the Student Loan Relief Helpline is free, and you will not need to pay them anything until you agree to have them start working on your behalf, so all you’ve got to lose by calling is a couple minutes of your time.

To reach the Federal Student Loan Relief Helpline, call: 1-888-906-3065
To reach the Private Student Loan Relief Helpline, call: 1-866-530-9946

What Happens After My Borrowers Defense Against Repayment Letter Is Received?

After the Department of Education gets your letter, they’ll place your student loans in forbearance and collections activity will cease on any defaulted loans you might have while they investigate your claim.

Keep in mind though that interest will continue to accumulate on your loan while they investigate your claim, so if you end up not getting the discharge, this could be costly.

One thing you need to look for is a response email from noreply@studentloans.gov which says “Borrower Defense Claim” in the Subject Line, as this is the way that the Department of Education will respond to your form submission.

If that letter says that you’re all set to receive either a full or partial approval of your Borrowers Defense to Repayment Application, then you will know that you’ve been marked to get your loans discharged entirely.

But don’t start the party just yet, because things won’t be finalized until you receive a followup email from the Department of Education, or from your Federal Student Loan Servicer, which clearly states that your loan has been discharged.

Again, my advice on this process is to pay an expert to help you draft the Defense Against Repayment Provision Application Form, handle the submissions and all the paperwork, since it’s your one shot and only hope at receiving complete student loan forgiveness.

Spending a few hundred dollars now to ensure that you save tens of thousands of dollars on student loans later is just good economics.

It’ll also reduce a lot of the anxiety involved in this process, anxiety that’s currently gripping millions of Americans hoping that they too will be able to qualify for a Borrowers Defense to Repayment Discharge.


Will I Owe Taxes on Forgiven Debt?

Unfortunately, Yes.

At the time of this writing, the Corinthian Debt Forgiveness Program still requires that any student loan debt forgiven will end up leading to tax liabilities for the borrower.

That means, whatever amount of money you have forgiven via the program has to be listed on your state and Federal tax returns as ‘income’, and you’ll be taxed accordingly.

For some borrowers, the tax bill might be an even bigger burden than continuing to pay off the old loans, leading to a tricky situation.

You’ll need to determine just how much you’re going to end up owing in both Federal and State taxes before deciding if a Corinthian discharge is truly the best option for you.

One bright note – in California, State Senator Janet Nguyen’s resolution to “Eliminate Tax Liability on Forgiven Corinthian College Student Loan Debt” appears to have been unanimously passed.

Once fully enacted into law, this bill will protect California borrowers from having any State tax liabilities from forgiven Corinthian Colleges student loan debt.

These borrowers will still have to pay Federal taxes on any forgiven debt, but at least we’re seeing steps in the right direction on this issue.


Will I Have to Pay Accrued Interest on Forgiven Debt?

The only interest you’ll be forced to pay is whatever accrues during the time that your loan is placed on Forbearance (while your Defense to Repayment claim is being evaluated), and only if you stop making payments to cover interest accrual during that time.

If your claim is accepted and your Corinthian debt gets forgiven, then the interest which accrued on your loan will be forgiven, along with the principal balance.

Just make sure that you continue making payments on your debt (at least enough to cover the interest accrual) while your claim is being evaluated, and you shouldn’t end up in any trouble.

Did You Go To Heald?

I’ve got great news for Heald students!

The Department of Education basically hates Heald College, because they determined that Heald lied about job placement rates for many of its degree programs between 2010 and 2014.

If you were enrolled in any of the Heald College programs listed here, and you want to apply for the defense to repayment discharge, then you don’t have to write the huge defense against repayment letter outlined above, but can simply do this:

  1. Download or print out this Attestation Form
  2. Fill it out, sign it, then send it to the Department of Education with the attachments that it requires
  3. When you send it in, you can do it via email to FSAOperations@ed.gov, or by snail mail to Department of Education, PO Box 194407, San Francisco, CA 94119

Questions About Defense Against Repayment

If you’ve got questions about how the whole Defense Against Repayment thing works, then you can call the Government’s Borrower Defense Hotline at (855) 279-6207.

They’re available to walk you through the process Monday to Friday, 8:00 am to 8:00 pm EST.

You can also try contacting the Student Loan Ombudsman Group, or leaving a comment at the bottom of this page.

Other Questions About Corinthian Debt Relief?

If you have other questions about the Corinthian debt relief program, then check out the Federal Government’s official FAQ page on the program, here.

Still Have Questions?

If you still can’t find answers to your questions, then feel free to ask me in the comments section below.

I’ll try to get you a response within a day or two.

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Tim's experience struggling with crushing student loan debt led him to create the website Forget Student Loan Debt, where he offers advice on paying off student loans as quickly, and cheaply, as possible. His new website Forget Tax Debt, offers similar advice to people with back tax problems.

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Comments

  1. Hello I was one of the Heald Students 2010, sent my official transcripts and have called multiple times. Just want to know if theirs anyone out there that their loans have been forgiven. There is no status on my claim, its been since June 2016 that they received my paper work. Its affecting my credit so bad! How much longer!

  2. Katey Simpton says:

    I have done everything I was suppose to do for the Heald college loan discharge, I have mailed out my attestation form and all other information, it has been over a year since I mailed it. I also called the borrower defense line to make sure the received it just a few months back and they did. They also informed me it takes about a year to get to each claim. . It’s know going on 14 months and nothing from anybody no email or anything. My question is how long do I wait before I take more action or better yet what else more can I do. Thank you

    • Hi Katey,

      Just remember that there are MILLIONS of other people trying to take advantage of all these recent Federal forgiveness programs, and that the Borrowers Defense Against Repayment program has been FLOODED with new requests. It’s going to take some time for everyone’s requests to get processed. There’s really no way to estimate how long it’ll actually take.

  3. Michelle Snyder says:

    Hello, My son when to Wyotech in Blairsville Pa. We received the letter about loan forgiveness due to the fact they did not have job placement. My son has his loan in forbearance. He sent the form to receive loan forgiveness. I don’t understand how it takes so long to find out if the loan is forgiven.

    • Hi Michelle,

      It takes so long because tens of thousands of other people are all applying for the same benefit, and the Department of Education is woefully understaffed. All these Borrowers Defense Against Repayment letters and applications have to be manually reviewed, then manually approved or denied. It’s going to be a while before you find out whether or not your son will receive approval, especially because you guys are getting into the game kind of late. People have been applying for these benefits for over a year now.

  4. Jay R Ferrin says:

    I went to Heald College-Portland from July 2008 to January 2012. Study in Business Admin. & Information Technology. I have feel all the paperwork out when I heard Heald shut down but i have gotten nothing but the run-around and my friends that went before me have their debt reduce and yet I’am still waiting.

    • Hi Jay,

      It’s weird how these things go – hopefully you filled all the paperwork out correctly, and gave the DOE all the information they needed to make a determination. Hopefully your paperwork didn’t get lost too. You never really can tell how these things are going because there isn’t anyone to contact for an update, but if it’s been way longer than you think it should have taken, I’d contact the Department of Education and see if they can provide you with some sort of status check on your application.

  5. Brenda Skelley says:

    I sent my defense I was lied to for daughters school loan. They lied about alot of things. I turned the paperwork,attention form, documentation almost a year ago, still no info, isn’t there a phone number, something to speed up porocess?
    She went to one of the Everest schools on list and during that time frame.

  6. Question, I was enrolled in 2000 and was told back then I would go to WyoTech and never have to pay a dime and they would place me in a position after graduation. I graduated and got hit with the entire amount, no job and my AA was never recognized. I tried to speak to someone about it they told me I on the hook for the entire amount, and to keep looking I’d find something! For years I have tried to ignore it but I need this resolved… What are my options?

  7. Thank you for this blog Mr. Marshall. I am writing on behalf of my son who is currently stationed in Europe. He was a Wyotech, Laramie, WY student 2012-2013. His school and program DO qualify. He submitted the “Attestation….” “Borrower Defense to Repayment” online form almost a year ago (July). No response as of yet. He wanted me to request a recommendation for a lawyer.
    We have a story of our own that I don’t think you have heard of yet.
    I was there at the table with my son and 3 of his friends as the recruiter was giving his sales pitch at our home. I witnessed everything. Not only did the recruiter promise them job placement before they graduated the program, but also mentioned it would be no problem for them to get jobs in Laramie, while attending school, to help pay for living expenses and school expenses. “There’s PLENTY of jobs. They LOVE hiring students”, he said. It turned out, the town was more partial to employing the University of Wyoming students. So, in turn Wyotech ENCOURAGED students to take out STUDENT LOANS for living expenses. Yes, encouraged! All the student had to do is walk into the financial aid office and ask for money for living expenses and a new loan disbursement was created. It’s my assumption that was a practice to retain students.
    Also, they did have job fairs with vendors from the military branches and the mines/quarries. The problem with being employed by the mines was, they had no housing available in those mining locations for the employees.
    Wyotech, Laramie used a Wyoming state bank for his private loan. So, I think we may need to get a lawyer to see if both Direct and state bank loans could be relieved. If possible could you offer a recommendation?
    Thank you again for your assistance.

    • Hi Bobbi,

      I’m not sure I’d go for a lawyer quite yet – the Department of Education is WAY backed up with these requests (anyone and everyone with outstanding debt who hears about the program is submitting a letter), so just keep paying and sit tight. As long as he filled everything out properly and handled the process correctly, you should be hearing back on the loan soon.

      It’s true that these schools (and a lot of the other for-profits) specifically targeted MILITARY students, as they know they’ll get paid when the loans are funded by the Federal Government, which adds an additional nastiness to the predatory behavior they were committing. I’m confident that your son will be able to get a discharge, and I don’t think you’ll need the assistance of an attorney.

      If anything, try contacting the Student Loan Ombudsman Group, which is a network of lawyers that work pro bono for the Federal Government, and handle requests of this nature. They can’t tell you when you’ll hear back from DOE, but they can review the materials your son submitted to make sure he did everything properly, clearly states the claims/breeches, and increasing the odds of his letter getting an approval for discharge.

      You can find the Student Loan Ombudsman Group online, here.

      • Thank you for your quick reply. Actually, he did not join the military until shortly after he graduated Wyotech. Of course he got the information about enlisting from the job fairs and also from the other students there that were attending with their GI Bill. Please do not take this wrong. I am very proud that my son is serving for our country. This decision ended up working out well for him. He is just in agreement with the fact that Corinthian College used unethical recruiting practices.
        Also, he only submitted the online application, he did NOT send a “Defense Against Repayment Letter”. Should he have one made also? (that is why he was requesting an attorney.

        • The Defense Against Repayment Letter may have been filled out online – it depends on what he actually did, and you’d have to ask him for specific details on what exactly was done. I think you will want to followup with the Student Loan Ombudsman Group.

  8. Lisa Wren says:

    Hello! I attended Heald College in Sept. 2003-April 2005 and graduating with my associates degree in Medical Assisting. I’m not sure if I have proof that they are looking for to write them a letter. I do remember them having a place that we could look for jobs once we graduated. I would guess that is stating that they can guarantee a job for me. I’m just so unsure if I would qualify for any of this, also it being so long ago. It is hard to find all the information they are needing. Do you have any advise to guiding me in the right direction or just continue paying my student loans?

    • Hi Lisa,

      You’ll need to come up with something very specific, and concrete. You cannot get an approval without being direct and to the point. You need to accuse the school of violating some state or Federal law. Don’t give up. If you feel they took advantage of you, did something like false advertising, misleading you about job placement, expected salary, transferability of credits, etc., then you have a legal recourse and you need to fill out a Borrowers Defense Against Repayment letter.

      The more people that use this system and get their loans discharged, the less likely schools are to continue the rampant abuse that’s been going on for decades. We need everyone who’s eligible for the benefit to take advantage of it, and send a clear signal to Congress that the American people aren’t screwing around. We want student loan reform, and we want it NOW!

      Don’t quit!

  9. SONIA RAMIREZ says:

    Hello, my son went to Wyotech in Laramie got his loan though BND 30,000 and had a co-signer. He has not been able to get hired because of the school closing and the reputation is not there anymore. having trouble paying 350 plus with a minimum wage job. Can he apply for forgiveness programs? repayment plans with lower payments that he can afford. calls are just overwhelming to both him and his co-signer. help please or any advise would be greatly appreciated.

    • Hi Sonia,

      He can absolutely apply for the benefit. There’s a whole program called the Closed School Loan Discharge Program that you need to look into, but even if he doesn’t qualify for that, he can still take advantage of the Borrowers Defense Against Repayment Provision and apply to have the debt discharged on the grounds that it’s invalid (since it was taken out based on lies, false promises, etc.).

      Your best bet may be to contact someone who can help, and to pay them a small fee for the work they’ll do to put together your claims letter, submit it, and deal with all the paperwork. My recommendation is to call the Student Loan Relief Helpline at 1-888-906-3065. Your call is free, and you’ll only be charged if you decide to have them do the work on your son’s behalf.

  10. Mayra Meraz says:

    What if I was lied to after already being enrolled? I signed up for the pharmacy tech program Everest college in July 09 but got into some trouble in august that caused me to have a felony in my record. I let them know and they said it wouldn’t affect me that I should continue with the program but it did affect me I never got my pharmacy tech license so I was never able to even get a job? Should I seek a lawyer for help?

    • Yes, you should pursue a Defense Against Repayment discharge since you were lied to. I would contact an attorney and start working on preparing your Defense Against Repayment letter.

  11. Jennifer says:

    Hello, I attended Everest in Bremerton, Washington which is now closed. I was guaranteed a job and was promised they would be there every step of the way until I found a job, well they did not help me AT ALL even when looking for an externship site I was the one who had to search for a place because they would not help and it was getting close to the time I was going to graduate so I had to push and beg for them to help me find a place nearby to do my externship, I was even willing to travel (across the water) and they told me they couldn’t find anything at all, which is very strange since Seattle has a lot of hospital/clinics and I was always hearing about places in Seattle where they were looking for people , basically I did all the research and I finally found somewhere to do my extern. Anyways, I did not take out any student loans but payed off the entire cost of the course. Is there a way to get my money back?

  12. I attended Heald Concord campus and was promised immediate job placement. “get in get out and get ahead” More like they take your money and did not care anything about morals. Long story short. I took a leave of absence due to pregnancy. After I gave birth I necame ill had 2 major brain surgeries. Heald college was aware of my situation and leave of absence. Heald campus closed and my loans were/are past due. I have not paid on loans due to students receiving loan forgiveness. which I think I would qualify for due to my situation. in your professional opinion would I qualify for either option? my leave of absence was in 2010.

  13. i got my student loans forgiven but they are still on credit report how do i get them off

  14. Pablo johnson Jr says:

    My sons attended Wyotech in Laramie WY back in 2008 , they were promised job placement which never happen. The school loans are a hardship to them and my self when the recruiter came to our home he told me if I co-signed for my young’s son he would get a lower interested rate. Come to be after they finishing school as a auto tech there degree was worthless no auto company’s would give them a job. So when the bill came for there school loan my young’s son which I though I had co-signed ended up that I was the barrower not a co-signer. We live in south Texas about 1900mile from WY. When they were there about a month or so already attending school in there dorm which was already included in the school loan. They were told they had to fine another place to stay because the dorm were meant for other students they had made a mistake. So they had to get another loan for housing I called them time after time to try to fine out what was going on, never got a straight answer just they were working on it. And not going try getting into the training they got there which was a waste of money and time. It was just about how much money they could make as profit that’s all. There is even more.

    • Hi Pablo,

      If they were PROMISED job placement, then you have a case to file a Defense Against Repayment letter and try to get the loans discharged. None of the other details really matter – the important part of the process, and what will need to be included in your letter, is the fact that your sons were promised something that the school could not (and did not) deliver. If you can prove that, then they’ll get their loans discharged.

      I would contact an attorney to help you draft this letter, or call the provider I refer people to: the Private Student Loan Relief Helpline. Their top strategy is to challenge the legal validity of the loans (via the Borrowers Defense Against Repayment Provision), and get them discharged due to the schools or lenders violating some state or Federal laws.

      To talk to the Private Student Loan Relief Helpline, call 1-866-530-9946

  15. Hello,
    My husband attended Heald (HNL) and we did finally get an email indicating our Federal loan was forigiven ($26,000). However, he still has private loans ($7300) with Balboa and Campus Funding LLC through UAS. I’ve heard back in 2015 there was a class action law suit that some students were going to take up against these private lenders who bought these loans from Corinthian knowing they were going through bankruptcy. I’ve heard ECMC allowed 40% reduction on private loans or cfpb can help. I haven’t received solid information about the private loans for Corinthian. Do you know anything? Do you know if that lawsuit ever transpired?

    • Oh and we did get refund for the amounts paid on the federal loans.

    • Congratulations!

      I’m not sure on the status of that lawsuit, but some fancy Googling should be able to get you details on whether or not it actually went down.

      In the meantime, I’d file a Defense Against Repayment letter for the Private debt you still owe. You can absolutely get that wiped out through the same process you used for the Federal loan.

    • Hi,

      May i ask how long you waited to hear back about the federal loan? Just curious.

      Thank You!

    • Hi I also attended Heald and got an update about my loan a few days ago that they are still evaluating it. I’m wondering what did your husband put on the attestation form to get his loan forgiven. I would really appreciate it if you would reply back to me.
      Thank you
      Adriana

  16. i attended everest school in santa ana california they promised me more money and also to pay for my national pt exam and none of that happened i was studying for pharmacy tech making 11 an hr in california. I tried getting ahold of everest college but its closed along with all everest in california. they broke their promise to me and i graduated ad they told me to take all the time i need for the national exam and now i feel ready from 2011 to now just shows how i did not learn anything in the school and im expected to still pay almost 13,000 more. I contacted everest and they say they have no idea how to do that also the company i called told me they never bought schools in california only in oregon and nevada and still couldnt assist me.

    • Hi Monique,

      If what you said is true (that they promised things they didn’t deliver), then you’ll qualify for a Defense Against Repayment Discharge. The hard thing is that you have to put together a legal letter to prove all this, and a Judge or Court will need to agree with your opinion in order to get you the discharge.

      My recommendation is that you pay someone a few hundred dollars to help get this taken care of. Contact the Student Loan Relief Helpline at 1-866-530-9946 and they can help you with the process from start to finish. You’ll need to pay them a bit, but it shouldn’t be all that expensive, and will be your best way to maximize the chances that you qualify for the discharge of the total $13,000 amount you’re being told to pay.

  17. Mechelle Jones says:

    I went to Everest known now as park college in Denver. And I have been working the same job I was working while attending. I do not make enough to pay on or off my student loan what do I do?

    • Hi Mechelle,

      You need to call the Student Loan Relief Helpline and ask them if they can help you qualify for the Corinthian Colleges Student Loan Forgiveness Program, or if you’ll need to pursue filing a Defense Against Repayment letter to get your loans discharged.

      If you have a Federally-funded student loan, then call their Federal Loans Hotline at 1-888-906-3065. If you have a Privately-funded student loan, then call the Private Hotline at 1-866-530-9946.

  18. Ugh.. I’m terrified of ever attending another college… terrified to send my own kids to college! When I first enrolled, I only enrolled with the guarantee that I wouldn’t owe anything! Everest University told me that with all the kids I have (5 at the time, now 7… yes I’m done, lol) and being low income (no I’m not on welfare) that financial aid and grants would cover everything! Then when the Sallie Mae papers came into play, they said it was protocol in case something should happen with financial aid (like a felony… which my record is still clean, and no other changes). So I started in 2008 and withdrew in 2009 and never seen anything on my credit or received any mail so I believed them! I got back on my feet at re-enrolled with them again (with that same promise) in 2010 and withdrew in 2013 because they weren’t allowing me to change my major. Shortly after withdrawal I found everything on my credit report, including from 2009!! Terrified is putting it lightly.. I don’t want my kids to start out life in debt, mostly when I now have trust issues from this. It’s craziness! And other than my work history to show low income and my kids birth certs for proof… I have nothing other than my word because this promise was made over the phone 🙁 I’ve been fighting for 2 years now and I did apply for the Defense To Repayment in March of 2016 and still I wait. I called last week and they said, “It’s still being processed”.
    Hopefully I hear back soon. And I pray they approve it! I mean, in all honesty, I feel I shouldn’t have to pay for that lie! Also if it does happen to get denied then they can have my credit because I simply cannot afford to pay it (a big reason I made that a very clear staple for me to enroll). Frustrating to say the least…

    • Hi Heather,

      Unfortunately, it takes FOREVER for the Defense Against Repayment letters to be processed (because they Department of Education is getting FLOODED with them…), so you’re just going to have to hang tight a while longer. Sounds like you’ve got a pretty solid case though – if they promised you that you would never have to spend any money because grants would cover your tuition and expenses, then that promise didn’t come true, then they are screwed and you will be just fine. It’s bad that you don’t have a written record of it, but this has happened to so many people that it should make the barrier to entry and belief a little lower, and you should be ok. Keep your fingers crossed, hang tight, and you should get your approval.

  19. Do Everest online schools qualify for the loan forgiveness?

  20. My brother went to Wyotech and I am the cosigner on all 3 of his loans when I tried to have his loans cleared they said I (he) wasn’t eligible for the forgiveness. I’ve been struggling with this ever since because it’s in total of almost $30,000. How can I get help. He private loan for all three was originally three Genesis and since it was sold so and they said it would only apply to the interest and not the principle. I had his loans in forbearance because I couldn’t afford $250-350 a piece.

    • Hi Monica,

      I don’t have any great solutions for you, because private loans are harder to work with, but I would consider consulting with a local attorney to see what they think you should try. It may be time to consider Bankruptcy, maybe time to look at the Borrowers Defense Against Repayment program, or time to investigate other opportunities. There’s probably something to be done, but only a local expert will be able to guide you the right way.

  21. Billy Joyner says:

    My name is Billy Joyner i went to Everst school in Aurora Illinois from January 2013 to November of that year i received my certificate for Electrician and was promised to be in a position to have a better paying job even with a ged the school informed us they were closing now navient and university accounting services are sending me letters to take my check I’ve been sending money im a forklift operator i can only afford 40 dollars a month I’ve been paying them for three years and I’m receiving harassment phone calls

  22. Ivan Olivares says:

    Hi, my question: I attend Heald College Fall 2014 thru April 2015 and my school was shut down. Is it to late to apply for the student loan forgivness if i was still attending Heald before the school shut down.

  23. Why is it taking so long to receive an update? I applied for forgiveness 6 months ago and I know I qualify because I was enrolled in one of the programs listed after 2010. I am so frustrated because this is holding me back from buying a home. How much longer is this going to take?

    • Hi Gladys,

      This is the Federal Government you’re talking about. The cogs and wheels of the Gov’t grind slowly, if at all. You could try contacting the Department of Education, and your Loan Servicer, for assistance.

  24. Hello,
    I was part of the Heald college fraud, a few months back I mailed My accurate information to the office of education. My only question and concern is I just wanted to make sure they have received it. I’ve called there hotline they told me I had to email them to see if they received the mail, since then I have done so but no response. I know this will take some time. Bottom line does anyone know about how long the process takes or if there any way to know if they received the mail or I’m I just paranoid they didn’t receive it. Thanks!

    • Hi Katey,

      Unfortunately, I’m not aware of a better way to get in touch with them. All the DOE people are being flooded with inquiries regarding the recent student loan forgiveness updates (for ITT Tech, Corinthian and now DeVry), so there’s a good chance that you’ll just have to hang tight and wait.

  25. My husband went to Wyotech in Sacramento and graduated in 2007. Would he qualify for one of these options?

    • Hi Becca,

      You’ll have to read the chart and find out. One thing you could do is contact whoever services his loans (the people he sends his monthly payments to), and ask them whether or not his debt qualifies.

  26. Ashley Litteral says:

    I attended Everest college online mesa, az from 04/2009 to 04/2011 major: criminal investigations am I eligible to apply for this loan forgiveness? I feel I have been defrauded by them and to this day have not been able to obtain a position related to my degree. The counselor I spoke with before enrolling mislead what type of job I would be able to get the job placement recommendations were a joke, not positions I would need to spend 30,000 for a degree for! Not to mention when I was attending I wanted to take a semester off due to giving birth and was told I would have to withdraw but would still have to pay to which I have proof of via email. I finished my degree program to no avail of obtaining a career with this useless degree.

    • Hi Ashley,

      If you were promised that you would be able to find a job at a certain income level, then you may qualify for a Defense to Repayment discharge. The best way to find out for sure whether or not you’ve got a solid legal ground to stand on would be to consult with a local attorney who has experience dealing with student loan debt. As an alternative, you may want to try calling the Student Debt Relief Helpline, who you can reach here: 1-888-694-8235. They should be able to take down your information and give you some options for moving forward.

      Best of luck! Hope it works out for you!

  27. do i get refunded money I’ve already paid for my student loans?

  28. Carlos G Mayfield says:

    I attended Heald 2007-2010. I was in the IT Network Security Program AAS degree. I don’t understand that this applies to only people who are enrolled either on or after 7/1/2010. Everyone who were enrolled in this program were defrauded. Not just those students after 7/1/2010. No one should get special priveledges. Everyone applies

    • Hi Carlos,

      It has to do with Politics. The Federal Government surely had to offer concessions and compromises to get this legislation put in place, and the banks are never going to go for forgiving all debt completely. This was probably the date that both sides agreed on as offering relief to most of the students who were defrauded, without hurting the banks too badly.

      Wish I had a better answer for you, but this is how things work in this country. Politics, as usual.

  29. Robert Bambula says:

    Hi, great article, very informative. I was wondering if you might be able to help me. I was a VA student at Heald in California, so my tuition was 100% paid through my GI Bill. The VA removed Heald from their approved schools list a couple months before they closed, so I transferred to another school. When I left, I was told my account did not have a balance. Now, nearly a year later, I received a collection letter saying I owe Corinthian Colleges almost $200.00. I don’t know where to go or who to talk to to find out if I actually have to pay this. The only resource I found was to call the department of education hotline, and they checked some national record database and were only able to tell me that it isn’t a federal loan, which means I’m not subject to federal loan forgiveness. Do you have any advice about what I can do, or do you think I will end up having to pay?

    • Hi Robert,

      If I were you, I’d probably just pay the damn $200 and move on, but if you want to fight it, I think you should contact the Student Loan Ombudsman Group and ask for them to look into this for you. You can reach them here: 1-877-557-2575.

  30. What do we do with the Private Loans for tuition? Is there any action addressed for these loans?

  31. Joshua Hughes says:

    My bf attended in 5/09 the year isn’t included in the above listed, he withdrew after asking and trying to get his transcript to transfer to community college….9700.00 later in student loans is it possible the could be forgiven and if so how do I go about preceding? Just discovered this info when trying to get the loans out of default

    • He will only be able to qualify if he can get approval under the Defrauded Student Relief part of the program. See item 2 under the headline “How Does Corinthian Colleges Debt Forgiveness Work?” above.

  32. Emily Garcia says:

    I have a question. Since Heald college closed and there is no way to contact them how can i get a copy of my transcript? I am planing on applying for the Defrauded Student Relief and i will need it. Please let me know if you know. Thank you.

  33. I went to WyoTech (06-07) on a Private Loan, and WyoTech screwed up the loan financing by not certifying the loan in time (they had the paperwork 3 month in advance! I have documentation for this!)
    I had to re-finance the loan for a MUCH higher interest rate because I had already completed his first 2 months at WyoTech and was therefore responsible for the whole tuition amount.

    When I found out about the loan-forgiveness program for WyoTech students, I was advised by one of the Federal Student Loan customer service reps to file a complaint with CFPB (since mine was a private loan). I filed the complaint with CFPB (included all relevant documentation) and this is the response I received: ….(quote) “We reviewed your complaint and couldn’t send it to the company for a response. This could be because WE HAVEN’T REGISTERED THE COMPANY or because your complaint DID NOT INVOLVE A FEDERAL CONSUMER FINANCIAL LAW WITHIN OUR AUTHORITY “(end quote)….

    This makes no sense! They’re saying that they “haven’t registered the company” (which is WyoTech whom THEY are suing)??? And they’re saying that there is NO “Federal Consumer Financial Law” that protects consumers against unfair practices???

    The school had the loan papers 3 MONTH IN ADVANCE, and I followed up repeatedly regarding the loan being certified by the school. They ALWAYS assured me that everything was “okay”!!! Then – 2 MONTH AFTER I started classes – I got notified that the bank closed the loan application because WyoTech NEVER certified the loan, and after being FORCED to re-finance it, the payback will be over $30-thousand MORE because of the higher interest rate!!! And there is NO LAW AGAINST this kind of fraud?????

    My dad is a co-signer on this loan, and we consulted 7 different lawyers. Each of them told us that we would either need 2 different lawyers since I went to WyoTech in PA but we live in WV, or we would need a lawyer that is bonded in BOTH States, and in the end it would cost us more in legal fees than the entire loan amount.

    And so now, if I read this article correctly, it would mean that even IF there was a chance that I might get the remainder of this loan forgiven (I’ve been paying on it since 07), I would get PUNISHED AGAIN by having to pay taxes on whatever amount is forgiven??? And what about my dad who is co-signer for the loan? Would he also, ADDITIONALLY have to pay taxes on it (so we get charged TWICE)???

    • Hey Kyle,

      Honestly, I don’t have much good advise for you hear. I would say “consult with a local attorney”, but it sounds like you’ve already done that. Your best shot may be contacting the Student Loan Ombudsman Group – this is a Government-sponsored legal agency who offers advice on dealing with troubling student loan debt situations.

      However, I think they only advise (technically) on Federal Loans, and since yours are Private, they may not be able to help.

      With that said, I’d still give it a shot, because they’re only a phone call or email away. You can find the contact info for the Student Loan Ombudsman Group here.

  34. Nusrat Jahan says:

    If the loan gets discharged you still have to pay taxes on them. I also heard you are responsible for any interest accrued. Do you know anything about them?

    • Hi Nusrat,

      Yes, as the law stands now, debt forgiven under the Corinthian Colleges Discharge Program will still end up leading to a tax penalty, and payment of any accrued interest.

      Efforts are underway to stop this, however, and California State Senator Janet Nguyen is leading the charge to try and get rid of the tax liabilities tied to discharged Corinthian loans.

      Keep in mind that even if her legislation is passed, that’ll only protect you from California taxes. As far as I know, there’s no counterpart legislation at the Federal level, so Federal tax law will still apply.

      Still though – it’s a much better deal than having to continue paying off those dead-end loans.

  35. Jofelson Baluyot says:

    Good Morning. I attended Heald Honolulu for AAS Health Information Technology from 11/2011 to 1/2014. I was not really surprised by how it all went down with Heald. It came evident to me their deceit towards job placement and holding students who wished to graduate on time from their program, that I even wrote a paper about it in my English Class (I was encouraged by both my peers and my instructor) as an eye opener to everyone. I was always in debate with my program director about it hoping my inquisition will break their lack of transparency. Unfortunately, I found myself defeated fighting my rights as a student. so I solemnly vowed to myself to just do my best and graduate and get out of there and karma to them will do the rest. So I did finished my program, graduated January last year, and move here in San Diego and still finding luck to land a stable job in my field. I would like to know if I am eligible to apply for the student loan forgiveness and get rid of my $33,000 debt. Please let me know. Thank you.

    • Hi Jofelson,

      Sorry to hear about what you faced at Heald. Your story is not unique – students of Corinthian have lodged many similar complaints to yours in the past few months.

      I think you may still be able to qualify for the Corinthian Forgiveness Program under the Defrauded Student Relief component of the plan.

      Even though you’ve already graduated, you should be able to make an argument using the Defense Against Repayment Provision to request forgiveness for being lied to about job placement rates.

      I hope it works out for you, and I want to hear how it goes. Please let me know whether or not they accept your application.

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