Former students at for-profit college need better information and more help, 12 Attorneys General tell U.S. Department of Education
Attorney General Brian E. Frosh today urged the United States Department of Education to forgive loans of former students of bankrupt Corinthian Colleges, and to halt its practice of encouraging them to transfer to similar for-profit colleges that may be violating state and federal consumer protection laws.
Attorney General Frosh joined with 11 other attorneys general in asking Education Secretary Arne Duncan to provide prompt debt relief for Corinthian students. Frosh also asked the Education Department to alter its online guidance information so Corinthian students are not encouraged to transfer to other for-profit colleges that are under investigation by state or federal authorities. Those students should also be informed that they might not be eligible for loan forgiveness if they transfer their Corinthian credits to another school.
“Some for-profit colleges have seriously harmed students who are looking to invest in themselves, burdening them with debt and leaving them ill-prepared for the job market,” said Attorney General Frosh. “We need to make sure these students are not further harmed.”
In a letter sent today, the attorneys general urged the Department of Education to remove from its website listing of options for transfer or otherwise identify schools that had been sued or that are under investigation. The Department should refrain encouraging other vulnerable students to consider these schools, they said.
Corinthian students have the option of forgiveness of their loans if they choose not to transfer their credits. Frosh asked that the Department of Education immediately send applications to students allowing them to begin that process.
“If students didn’t receive the education they were promised, they should have their federal student loans forgiven,” Attorney General Frosh said.
The concerns raised by the attorneys general echo those of U.S. Senators Dick Durbin and Maxine Waters, both of Illinois, who have also criticized the guidance provided to Corinthian students from the Department of Education.
For more information about Corinthian students’ rights under the closed school discharge (forgiveness) of their student loans, visit https://studentaid.ed.gov/repay-loans/forgiveness-cancellation/closed-school.
To read the full letter from the Attorneys General to Secretary Duncan, visit http://www.oag.state.md.us/Press/Arne_Duncan.pdf.