Calling themselves the “Corinthian 100”, students who attended a college operated by the for-profit educator Corinthian Colleges, Inc. are refusing now to pay their student loans. They are calling on the Education Department to discharge the $500 million in private student loans taken out by Corinthian students.
Corinthian took a buy out from student loan guarantor ECMC Group Inc. last November and the schools that were still viable have been placed under a new nonprofit, Zenith Education Group. Prior to that Corinthian faced numerous lawsuits and investigations over credit transfer claims made to students and high default rates among students that exceed Federal standards.
Former students of the Corinthian colleges claim that their degrees are worthless now and that the Education Department should have better regulated the for profit educator and informed students that it was in trouble.
The Education Department did release a list yesterday of institutions that are on “heightened cash monitoring” due to concerns over how the educators are handling their financial aid programs. You can see the complete list of 550 schools at the end of this article from The Chronicle of Higher Education.