Durbin demands feds offer debt relief to former Everest College students
U.S. Sen. Dick Durbin (D-IL) called on the U.S. Department of Education on Tuesday to provide federal debt relief to students who attended now-defunct Corinthian Colleges, branded locally as Everest College.
Corinthian Colleges closed the last of its campuses last week after being investigated by the U.S. Department of Justice, the Securities and Exchange Commission, and at least 20 state Attorneys General. The Consumer Financial Protection Bureau and three state Attorneys Generals also sued the school for false and misleading advertisements.
Currently, Illinois students are not eligible to discharge their federal student loans due to the campuses in the state being sold rather than closed.
“For years Corinthian lured students with flashy ads and misleading promises, leaving them with mountains of debt and little to show for it in the way of a meaningful education," Durbin said. "Corinthian’s fraudulent behavior has left thousands of students in financial desperation."
The Department of Education has not responded to a letter from Durbin and U.S. Sen. Elizabeth Warren (D-MA), along with others, demanding the department recognize and act upon Corinthian's fraudulent job placement and accreditors.
"We can’t simply write these students off as collateral damage and move on," Durbin said. "All Corinthian borrowers should be eligible to assert a defense to repayment, and I have encouraged the department to create a process that is simple and borrower friendly. Borrowers shouldn’t need a lawyer to be able to apply for or receive relief. These borrowers have already been victimized by Corinthian; they shouldn’t be victimized again by the government.”