Posts Tagged: ‘Corinthian Colleges’

Regulators able to get $192 million in Student Loan Debt Settlement from Aequitas

September 5, 2017 Posted by kingcade

Aequitas Capital executives believed they had purchased a gold mine when they began buying student loans from Corinthian Colleges- instead, the debt proved to be the company’s downfall.  Following the for-profit college’s decent into bankruptcy and liquidation; Aequitas also collapsed amid accusations the company’s top execs were running a Ponzi scheme.

However, Aequitas continued to collect payments on the debt- until now. The U.S. Consumer Financial Protection Bureau and several state attorneys general and the Aequitas receiver reached a deal in which about 41,000 former Corinthian students whose debt is held by Aequitas could get more than half- possibly all, of their debt eliminated.

In July 2015, Aequitas became a key ally and vital source of liquidity for Corinthian by buying massive amounts of student debt. By helping finance Corinthian’s in-house private loans, Aequitas enabled Corinthian to access billions in student loan money from the U.S. government.

The bureau recently filed a lawsuit against Aequitas as part of the settlement. It claims Aequitas employees privately expressed anxiety about the huge percentage of Corinthian students who were failing to make their loan payments. “With defaults this high, how can we defend our practices,” the unidentified employee wrote in a 2011 note.

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For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Education Secretary Sued for Delaying Rules Protecting Student Loan Borrowers

July 17, 2017 Posted by kingcade

Education Secretary Betsy DeVos is being sued by eighteen states for allegedly delaying new federal regulations designed to protect student loan borrowers from being scammed by for-profit colleges and other schools.  The rules, known as borrower defense to repayment, were developed after a series of high-profile collapses of for-profit chains such as Corinthian Colleges and ITT Technical Institute left thousands of students with worthless degrees and mountains of student loan debt.  The regulations were developed by the Obama administration and scheduled to take effect on June 30.

Last month DeVos delayed the implementation and launched an effort to rewrite the rules, arguing they were putting taxpayers at risk for “significant costs.” The lawsuit, filed by attorneys general from 18 states plus the District of Columbia, said DeVos’ violated the Administrative Procedures Act because she did not satisfy the standards for a delay, and failed to give the proper notice or offer the public time to comment.

“These rules served as critical protections against predatory for-profit schools that exploit hard-working students–students who are simply trying to invest in their own education and future,” said New York Attorney General Eric Schneiderman, who also was among those filing the suit.

Click here to read more on this story.

For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Trump Administration Delays Student Loan Forgiveness Program

June 26, 2017 Posted by kingcade

The federal student loan forgiveness program established to refund borrowers who were defrauded by their schools has been put on hold until further notice, according to the Department of Education.  This applies to Corinthian College students who were defrauded by the school’s deceptive advertising and false job placement rates.  Approximately 15,000 student loan forgiveness claims from Corinthian students had been approved as of October 2016.

Here are the requirements for qualifying for a borrower defense federal loan discharge:

  • If your school misled you in any way about your loans or education program;
  • If your school violated certain state laws, such as consumer protection statutes or laws related to your loan or educational services.

Secretary of Education Betsy DeVos said on June 14 that last year’s expansion of the forgiveness rules “missed an opportunity to get it right.” Several Democratic senators are demanding answers and asking the Dept. of Education to provide detailed information regarding loan forgiveness applications and approvals for past students of Corinthian Colleges, along with two other failed for-profit college chains: ITT Technical Institute and American Career Institute.

Click here to read more on this story.

For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Corinthian College Students Still Waiting for Financial Aid Help

October 14, 2016 Posted by kingcade

Eighteen months after Corinthian Colleges Inc. closed the doors of its remaining locations, Heald College, Wyotech and Everest University, tens of thousands of former students are still waiting to receive some form of relief from the student loan debt they incurred to attend the defunct college.

Nearly 80,000 CCI students are facing debt collection related to the loans they took out to attend the schools. Although the Department of Education’s has the ability to provide defense of repayment discharges, which is a process that would eliminate debt based on the college’s alleged fraudulent actions.

The former student’s attempts to obtain discharges have been filled with issues, most stemming from the fact that the process has seldom ever been used and never to the extent it is needed for CCI students.

Due to the alleged fraud, students may be eligible for loan forgiveness of any federal Direct Loans, according to the Department of Education. The investigation process involving federal prosecutors, attorneys general and other agencies is ongoing. However, they have found evidence of fraud by CCI involving the use of inflated job placement rates and pushing students into high cost loans.

A report compiled by the Department of Education found that there are 79,717 people who are eligible to apply for loan forgiveness, but are instead dealing with debt collectors. Of those former students, 30,000 have had tax refunds, tax credits and other benefits seized, while 4,000 have had their wages garnished.

Click here to read more on this story.

For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

The collapse of ITT Tech gives former students a chance to wipe out their student loan debt

September 1, 2016 Posted by kingcade

Students who graduated or dropped out of ITT Technical Institute may be the biggest winners in the federal government’s aggressive actions against the for-profit school.  The Education Department’s sanctions on the Carmel-based ITT Educational Services Inc. allow past students to take advantage of the “defense to repayment” rule that can wipe out their student loans.

Federal law gives the Education Department broad discretion to forgive student loans for borrowers who claim they were defrauded or that their college violated state laws. The government recently made the case that ITT has done just that and is inviting former students to request what could amount to hundreds of millions of dollars in loan forgiveness.

The “defense to repayment” rule applies to all former students with federal loans, but does not cover private loans.

Another piece of good news- The Education Department is simplifying the claim process for borrowers. The defense to repayment rule falls under the U.S. Higher Education Act. It has existed for years, but received little attention until recently.

The Education Department has already forgiven more than $4.2 million in loans from more than 2,000 Corinthian College students who claim they were defrauded by the for-profit chain. Students at other for-profit colleges, such as Brown Mackie College, which is closing most of its campuses, will likely have a strong case as well due to the precedent set by Corinthian.

ITT has been ordered to begin working with other colleges to facilitate transfers for students. Anyone already enrolled in ITT can continue to access federal loans if they want to finish their program. If ITT closes, the Education Department has said it will forgive current students’ loans.

Here are some ways you can submit a claim:

Go online: https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/borrower-defense

Email your claim: FSAOperations@ed.gov

Mail your claim: U.S. Department of Education, PO Box 194407, San Francisco, CA 94119

For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Related Resources: http://www.indystar.com/story/money/2016/08/26/itt-techs-collapse-could-help-former-students-wipe-out-their-loans/89419812/