16,000 Washingtonians to receive nearly $158 million in federal student loan discharges


16,000 Washingtonians to receive nearly $158 million in federal student loan discharges

Attendees at Everest College campuses such as Renton are eligible.

On June 3, Attorney General Bob Ferguson announced that 16,850 Washingtonians who attended any school owned by Corinthian Colleges, a for-profit college that engaged in deceptive conduct, will receive $157.9 million in aid .

The US Department of Education awarded $5.8 billion nationwide in student loans to Corinthian College students across the country. Ferguson had been seeking this action from the federal government since 2016. He claimed, and the federal government eventually agreed, that all borrowers attending Corinthian were subject to illegal conduct.

This discharge applies automatically – borrowers do not have to do anything to receive the relief. This relief applies to all outstanding loans to Corinthian Colleges, including borrowers who have not yet requested a “borrower defense” discharge.

According to the attorney general’s office, Corinthian owned and operated the Everest College campuses in Everett, Fife, Tacoma, Bremerton, Renton, Seattle and Vancouver until February 2015, when they were sold to Zenith.

“Washington’s student loan crisis is now $158 million smaller,” Ferguson said. “This is justice. The thousands of Washingtonians who were harmed by Corinthian’s illegal conduct deserve this relief to crush their student loan debt. Betsy DeVos and the Trump Administration had every opportunity to take this action and they refused. I applaud the Biden administration for doing the right thing.”

Ferguson has previously asked the Department of Education to pay off federal student loans for former Corinthian students. In December 2016, Ferguson sent a letter to department officials requesting automatic discharges of loans for victims of Corinthian’s fraud. In 2017, Ferguson, along with other state attorneys general, filed a joint application seeking class-action discharges for Corinthian borrowers in their states.



Source link

Jennifer Ahdout

Jennifer Ahdout

Leave a Reply

Your email address will not be published.