For Immediate Release - June 09, 2015

AG Healey Statement on U.S. Department of Education's New Debt Relief Process for Corinthian Students

BOSTON –Attorney General Maura Healey today issued this statement in response to the U.S. Department of Education’s announcement yesterday outlining new steps to address the concerns of students who attended schools owned by Corinthian Colleges Inc.

“I applaud Secretary Duncan, Undersecretary Mitchell, and the Department for standing with student borrowers against for-profit schools that have broken the law. Our office will be working to ensure that Massachusetts students victimized by schools like Corinthian get every protection they deserve. We are encouraged that the Department intends to rely on evidence from authorities like state AGs to grant group debt relief, and will continue to push for our investigations and findings against for-profit schools to be the basis of group relief to students.”

BACKGROUND:

AG Healey continues to lead a multistate effort to help students who were deceived by Corinthian Colleges. In April, AG Healey, along with attorneys general in eight states, sent a letter to the U.S. Department of Education calling on them to take swift action to protect students victimized by for-profit schools.

A lawsuit against Corinthian, brought by the AG’s Office in April 2014, alleges that Corinthian violated the rights of Massachusetts students by engaging in many deceptive acts and practices in violation of state law. The Attorney General’s Office intends to push for its investigations and findings against Corinthian and other for-profit schools to be the basis of group relief to students seeking discharge of federal loans.

In December 2014, a group of United States Senators wrote to ask the Department to use its authority to discharge the loans of students enrolled in Corinthian programs and to establish clear procedures for borrowers to assert their rights when schools break the law. In February 2015, AG Healey wrote links to PDF file to urge the Department to exercise its authority under statute, regulations, and loan contracts to assist student borrowers.

For more information on AG Healey’s extensive consumer protection campaign and comprehensive and ongoing investigation into the for-profit education industry, click here.

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