Attorney General Laxalt Notifies Former Corinthian College Students of Eligibility for Federal Student Loan Cancellation


April 17, 2017

Carson City, NV – Attorney General Adam Paul Laxalt, along with attorneys general from 43 other states and the District of Columbia, announced that former Corinthian College students are eligible for federal student loan cancellation. If a student’s federal loan is cancelled, the student will make no more payments on the loan, and any payments already made will be refunded. Schools operated by Corinthian Colleges, Inc. include: Everest Institute, Everest College, Everest University, Heald College and Wyotech.

    After intense scrutiny by various government entities, for-profit Corinthian Colleges abruptly ceased operations in 2015, transferring some of its campuses to a non-profit institution called Zenith Education Group. The U.S. Department of Education then found that while it was operating, Corinthian Colleges made widespread misrepresentations between 2010 and 2014 about post-graduation employment rates at its Everest College campus in Henderson, Nevada, and elsewhere across the nation.

      “About 1,300 Nevadans who have not already applied can expect a letter from my office in the next couple of weeks explaining their eligibility for federal student loan cancellation,” said Laxalt. “My Bureau of Consumer Protection will continue to fight for students who fall victim to institutions that misrepresent themselves, in an effort to help make Nevadan’s aware of their rights and options.”

        The letters that will be sent out explain the relief available to eligible students, and will contain an enclosed application that must be filed with the U.S. Department of Education. Lists of the affected campuses, programs and dates of enrollment are available at https://www.StudentAid.gov/ev-wy-findings and at https://www.StudentAid.gov/heald-findings. Students who first enrolled in the identified campuses and programs during the specified time periods are eligible for streamlined discharge of their federal student loans.

          Letters will be sent to students who fall within the U.S. Department of Education’s findings of fraud discussed above, and who are eligible for a special “streamlined” process to discharge their federal student loans. However, any student who attended Corinthian Colleges and believes that the institution made misrepresentations about employment prospects, the transferability of credits or other issues, may apply to have their federal student loans canceled using the Department of Education’s universal discharge application at https://borrowerdischarge.ed.gov. More information is available at https://studentaid.ed.gov/borrower-defense.

            The Office of the Nevada Attorney General encourages borrowers to beware of student loan scams. Borrows can apply for loan forgiveness, or obtain information on loan forgiveness for free through the U.S. Department of Education. The U.S. Department of Education never charges application or maintenance fees.

              The processing of applications may take time, and applicants for loan discharge should continue making payments on the affected loans until informed by the U.S. Department of Education or loan servicer that the federal loans have been cancelled or are in forbearance pending the completion of the application.

                More information about this outreach effort is available at www.corinthianoutreach.com. Students can also call the U.S. Department of Education hotline at 1-855-279-6207 or e-mail questions about the discharge of their federal student loans to FSAOperations@ed.gov.

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                  Last Updated 4/17/2017