Corinthian College Closure
The Office of the Attorney General is reaching out to notify hundreds of New Mexico residents who attended schools operated by Corinthian Colleges, Inc. – including Everest Institute, Everest College, Everest University, Heald College, and Wyotech – that they are eligible for cancellation of their federal student loans used to pay for those schools. If a student’s federal loan is cancelled, the student will make no more payments on the loan, and any payments already made will be refunded.
New Mexico residents who are eligible for federal student loan cancellation have received a letter from claims administrator Epiq explaining the relief available and enclosing a short application that must be filed with the U.S. Department of Education.
The Attorney General’s outreach will be sent to students who fall within the U.S. Department of Education’s findings of fraud discussed above, and who are eligible for a special “streamlined” process to discharge their federal student loans. However, any student who attended Corinthian Colleges and believes that the school lied about job prospects, the transferability of credits, or other issues may apply to have their federal student loans canceled using the Department of Education’s universal discharge application here. More information is available here.
Borrowers should beware of student loan scams. You can apply for loan forgiveness, or get information on loan forgiveness, for FREE through the U.S. Department of Education. The U.S. Department of Education never charges application or maintenance fees, so if you’re asked to pay, walk away. And Epiq is the only company working with the Office of the Attorney General to notify students – letters that come from any other company or organization are not legitimate and should be reported to the Office of the Attorney General.
It may take time for the U.S. Dept. of Education to process applications, so anyone who applies for loan discharge should continue making payments on the affected loans until informed by the U.S. Dept. of Education or his loan servicer that his federal loans are in forbearance while his application is pending or that his loans have been cancelled.
If you have questions, you can call the Office of the Attorney General Toll Free at 1-844-255-9210 or the U.S. Department of Education hotline at 1-855-279-6207, or e-mail questions about discharge of your federal student loans to FSAOperations@ed.gov.