A: The bankruptcy proceeding has not had an immediate effect on your student loans. However, the student committee does represent the interests of Corinthian students nationwide and will have a say in the bankruptcy proceedings. Lawyers for the student committee will soon ask the court to order an automatic stay that will temporarily suspend the collection of all the students’ debts until the court can decide who’s responsible for repaying the federal loans. Stay tuned to this website for news about these developments. Until notified further, however, at present student loan debt remains due and owing to your lender.
A: Unfortunately, at this time, the United States Trustee has approved a select group of Corinthian students to serve on the student committee. No further students will be appointed to the committee. However, the committee represents the interests of all Corinthian students, not only the committee members.
A: You may be eligible to discharge your federal loans.
The U.S. Department of Education has a webpage designed to help answer questions and assist you in determining if you can discharge your loans here.
There are additional resources. For California students, the California Attorney General has a webpage for helping students identify whether they are eligible for a “closed school discharge” of their federal student loans or reimbursement from the state’s Student Tuition Recovery fund.
For non-California students, Many of the states in which Corinthian operated maintain similar Student Tuition Recovery Funds. Students should contact their state’s agency that is responsible for overseeing private colleges and maintaining the Fund.
Students can also access online instructions and materials for applying for a closed-school loan discharge here.
A: The United States Department of Education has promulgated a rule allowing discharges of student loans for students who can show that their schools committed an act or omission that “would give rise to a cause of action against the school under applicable State law.” 34 CFR 685.206. The Department of Education has not yet provided any mechanism for asserting this defense, but has stated that it is creating such a process. Continue to monitor this website to learn more about this process when it is provided. In the meantime, the Department will accept requests for a defense to repayment sent via email to FSAOperations@ed.gov or by mail to: Department of Education, PO Box 194407, San Francisco, CA 94119. The Government’s website further provides the following information on what to include in the borrower defense submission:
A: A number of lawyers can provide legal advice for you in your particular situation. The Committee and its lawyers cannot provide that for you. For help finding a Legal Services Clinic in your area, please go here.
National Consumer Law Center’s Student Loan Borrower’s Assistance: http://www.studentloanborrowerassistance.org/
Higher Ed Not Debt: http://higherednotdebt.org/resources/
Debt Collective: https://debtcollective.org/
Strike Debt: http://strikedebt.org/
The Institute for College Access and Success: http://ticas.org/posd/home/
Veterans Education Success: http://veteranseducationsuccess.org/
Veterans Student Loan Relief Fund: http://www.studentvetrelief.org/
List of organizations capable of giving more specialized legal advice and assistance to veteran students: http://legalassistance.law.af.mil/content/legal_activities.php