Attorneys general from nine states say students who attended the failed Everest Colleges should not have to repay federal student loans and are asking the U.S. Department of Education to discharge the loans of students who attended for-profit schools operated by Corinthian Colleges.
The attorneys general say the Education Department has the authority to cancel loans if students are harmed by a college. They say Corinthian preyed on military veterans, single parents and first-time college students by promising jobs and high earnings.
Corinthian has indicated it plans to file for bankruptcy, which Illinois Attorney General Lisa Madigan said probably will limit what students might be able to recoup through legal action.
“Corinthian continues to dispute the allegations made against it and continues to believe its schools provide significant value for its students,” Joe Hixson, a spokesman for Corinthian at Abernathy MacGregor Group, said in an emailed statement to The Huffington Post, the publication reported. “These allegations focus on isolated incidents and ignore that for many years, tens of thousands of Corinthian graduates completed their studies, were certified in their areas of study and obtained employment in their chosen field.”
