AG Shapiro voices support for canceling student loans for students deceived by Corinthian colleges – PA Attorney General’s Office

U.S. Department of Education announced discharge, PA students will receive $131 million in relief

HARRISBURG — Attorney General Josh Shapiro has voiced support for planned debt relief for former Corinthian college students, following an announcement by the U.S. Department of Education to pay off millions in federal student loans for these students. Former students of for-profit Corinthian Colleges, Inc. and their related entities, which include Wyotech in Blairsville and Everest Institutes in Pittsburgh and Bensalem, will have their federal loans canceled.

“In 2017, we fought Corinthian Colleges for misrepresenting their placement statistics and inducing students to take out loans with high default rates,” AG Shapiro said. “And we were able to guarantee students relief for their private student loans. We lobbied for a release from federal loans for these students under the previous administration and I am pleased that the Department of Education has now recognized that all former students of Corinthian schools, including 11,519 Pennsylvanians, deserve their loans. federal be cancelled. My office will continue to fight institutions and lenders who use deceptive practices to trap students in insurmountable debt.

Following scrutiny by numerous government agencies, including the Pennsylvania Attorney General’s office, Corinthian colleges abruptly ceased operations in 2015. The Department of Education later found that from 2010 to 2014 , Corinthian colleges had made many false claims about their post-graduation employment rates.

In 2017, AG Shapiro announced a settlement with Aequitas Capital Management, a former investment firm that held the private student loan accounts linked to Corinthian Colleges. The settlement agreement provided $6.7 million in debt relief for Pennsylvanians who attended for-profit Corinthian colleges and was part of a larger settlement worth $192 million for students from all over the country.

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