{"id":49778,"date":"2015-06-08T20:46:14","date_gmt":"2015-06-09T02:46:14","guid":{"rendered":"http:\/\/www.businesspundit.com\/?p=49778"},"modified":"2020-09-21T13:33:49","modified_gmt":"2020-09-21T17:33:49","slug":"the-us-government-is-forgiving-544-million-in-student-debt-from-bankrupt-corinthian-colleges","status":"publish","type":"post","link":"https:\/\/www.businesspundit.com\/the-us-government-is-forgiving-544-million-in-student-debt-from-bankrupt-corinthian-colleges\/","title":{"rendered":"The US Government Is Forgiving $544 Million In Student Debt From Bankrupt Corinthian Colleges"},"content":{"rendered":"

\"Corinthian<\/a><\/p>\n

The US Department of Education revealed on Monday that it would forgive $544 million in student loan debt from the now-bankrupt for-profit chain Corinthian Colleges.<\/p>\n

During a press conference, Secretary of Education Arne Duncan also said the department is going to create a plan that will forgive the debt for students who were defrauded by the chain of useless schools.<\/p>\n

Lewin says “the government has never before opened debt relief to such a potentially large pool of students.”<\/p>\n

Corinthian Colleges shut down all of its remaining 28 ground campuses on Monday, April 27, leaving 16,000 students with no classes and a lack of support. The shutdown arrived two weeks after the US Government said it was fining the university $30 million for misrepresentation.<\/p>\n

Under the plan students who attended Corinthian Colleges throughout the United States and left on or after June 20 last year, will receive a\u00a0closed-school discharge of their federal student loans.<\/p>\n

Santa Ana, California-based Corinthian, which had operated the Heald College, Everest and WyoTech schools and offered degrees in healthcare and trades, filed for bankruptcy on May 4. The for-profit school chain filed for Chapter 11 with $143 million in debt and about $19 million in assets.<\/p>\n

In late 2014 Corinthian sold more than 50% of its campuses to nonprofit education provider ECMC Group Inc. The company kept 13 of its campuses open until April 26, 2015.<\/p>\n

The college-based company was fined $30 million after it misrepresented its job placement rates to students in its Heald College system. The government fine also said Heald College would no longer be allowed to enroll students.<\/p>\n

The program at one time employed 10,000 workers and operated more than 100 campuses with 74,000 students.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

The US Department of Education revealed on Monday that it would forgive $544 million in student loan debt from the now-bankrupt for-profit chain Corinthian Colleges. During a press conference, Secretary of Education Arne Duncan also said the department is going to create a plan that will forgive the debt for students who were defrauded by […]<\/p>\n","protected":false},"author":33,"featured_media":49781,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[25],"tags":[7729,7731,7730],"class_list":{"0":"post-49778","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-corinthian-colleges","9":"tag-federal-student-loans","10":"tag-student-loans"},"acf":[],"wps_subtitle":"","_links":{"self":[{"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/posts\/49778","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/comments?post=49778"}],"version-history":[{"count":1,"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/posts\/49778\/revisions"}],"predecessor-version":[{"id":76763,"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/posts\/49778\/revisions\/76763"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/media\/49781"}],"wp:attachment":[{"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/media?parent=49778"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/categories?post=49778"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.businesspundit.com\/wp-json\/wp\/v2\/tags?post=49778"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}