Filing Bankruptcy on Student Loans May Shield Debtors from Collection AttemptsA federal judge has been asked to increase a $100,000 contempt fine which was ordered against the U.S. Department of Education over failing to comply with an order to cease debt collection from former Corinthian College students.

The former students say new information shows that the department has “never been in compliance” with the court’s order to end the collection of students’ debt, so the $100,000 fine should be increased significantly. 

A class action was filed against the Department from former Corinthian College enrollees, who had borrowed federal loans to pay for their schooling. These students have applied to have their loans cancelled due to borrower defense, the motion claims.

During the prior U.S. administration, the Education Department granted these applications in full, according to the motion. After January 2017, the department ceased granting the applications, and then required former students to repay more than 70 percent of their loans, according to the plaintiffs.

In May 2018, the federal court granted the plaintiffs’ preliminary injunction motion and ordered the defendant to stop all efforts to collect the debts from borrowers who had completed an attestation form, the motion states.



“Defendants were directed to halt any action to collect a loan from the Plaintiffs and other students who attended Corinthian programs at specified times, as identified on published lists,” the students’ motion attests. This motion is currently being appealed to the Ninth Circuit Court of Appeals, who has not yet rendered an opinion.

In July 2019, the plaintiffs told the court that the Department was not complying with the preliminary injunction. Afterward, the defendants submitted a compliance report which showed that the Department sent 16,034 demands to students for payment of their loans.

In August 2019, the parties were at odds as to whether a stay put in place by the judge should be lifted or kept in place.

Thereafter, the motion states that 3,298 students made one or more payments toward their loans. In addition, the defendants sent adverse reports to credit agencies related to 847 students. Last, the defendant had subjected 1,808 students to wage garnishment or tax refund offset, the motion states.

In October 2019, the court entered an order which entitled the defendants to pay compensatory sanctions in the amount of $100,000. 



In the order, the judge stated: “there is no question that Defendants’ violations harmed individual borrowers who were forced to repay loans either through voluntary actions or involuntary methods (offset from tax refunds and wage garnishment) and who suffered from the adverse credit reporting.”

The motion states that a sanctions fund of $100,000 would award compensation of $1.69 to every student who experienced negative credit reporting, $12.45 to every student who endured involuntary collection, and $4.15 to each student who made voluntary payments.

The plaintiffs are asking for more money because a December compliance report revealed an increase in the number of students who have been affected by the defendants’ noncompliance with the sanctions order, the motion states.

Are you a former student of Corinthian College? Leave a message in the comment section below.

The plaintiffs are represented by Joseph Jaramillo and Natalie Lyons of Housing & Economic Rights Advocates and Eileen M. Connor and Toby R. Merrill of the Legal Services Center of Harvard Law School.



The Corinthian College Student Loan Payment Class Action Lawsuit is Calvillo Manriquez, et al. v. DeVos, et al., Case No. 3:17-cv-07210, in the U.S. District Court for the Northern District of California.

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65 Comments

  • Erica Keoughan May 18, 2020

    I too have been grossly taken advantage of. Unfair credit reporting is just the beginning! Add me, and do contact me.

  • Michele Green April 21, 2020

    Please add me. I would like someone to look over my student loan.

  • Michelle L Kitts February 4, 2020

    Please add me

  • Kimberley Diipla January 30, 2020

    Please add me

  • LISA HAWKINS January 28, 2020

    Please add me to

  • Aleta Winkler January 26, 2020

    Please add me

    • Karleen r Carlson January 27, 2020

      Please add me

  • Jennifer Morgan January 26, 2020

    Please add me, thank you!

  • Tonia Sood January 25, 2020

    I have been paying on my loans for many years and I am so confused on the status as it stands today. I thought I was doing the right thing and now feel like I have been taken advantage of completely by the system. Please help me figure this out. How do I find out if I am already included on this lawsuit and what do I need to do to protect myself?

  • Shawna Reynolds January 24, 2020

    I have been required to pay my loans and should not have to they never processed my application and my wages have been attached

  • Jacqueline Washington January 24, 2020

    Sadly this happened with us at Kaplan college I’m asking you to add me this issue has happened to many ppl in schools

  • christine shuman January 24, 2020

    i went to a Corinthian school. they closed for fraud and then reopened under a new name only to close for fraud again. please add me to this list. I have a hard time getting a job and i cannot sit for certifications because the school had to accreditation when i went there.

  • marletta L stine January 24, 2020

    Add me please!

  • Amber January 24, 2020

    I just received a bill in the mail from them. How can a school that closed down request money and I can’t even get my transcripts from them because they supposedly destroyed them.

    • Marletta L Stine January 24, 2020

      the department of education has copies of transcripts whether or not a school closed down.

  • Christopher Dye January 24, 2020

    Add me

  • Conchita M Moody January 23, 2020

    add me

  • MICHALEI MCLEROY January 23, 2020

    add me

  • Lauri Michele January 23, 2020

    Please add me.

  • Timothy J Biggs January 22, 2020

    Please add me to this lawsuit

  • Prakash c Shah January 22, 2020

    add me

  • Sayra Gonzalez January 22, 2020

    I am former corinthian college and my credits are worthless. Not only they stole my future they only gave me $25.00 back. You stole people money. We all deserve to have all of our loans cancelled and all of the money returned to us so we can further our educations and get real paying job. My tax returns were taken even though I was under forbearence. We want a clean slate.This should not be for limited years.Please add me to this Claim.

  • Josefina Olivo January 22, 2020

    I am also a former student of of Corinthian who attended to Everest University in Orlando, FL. Please add me.

  • carolina obando January 22, 2020

    I’m went to Everest university, I’ve been trying to clear my name and get forgiveness for these fruaded loans.

  • Jeannie R Terrell January 22, 2020

    I am former student of Corinthian College and I just spoke with my loan servicer about any type of loan forgiveness for this school being fraudulent. The fact that that part of my education hasn’t counted towards anything rewarding and now I’m in complete debt. How can I be apart of the law suit against them?

  • Someone that doesn't expect to be coddled by the government January 22, 2020

    Wow, someone needs to go back to grade school for spelling and grammar, not to college.

  • Trinity pasalich January 21, 2020

    I’m a former Corinthian college student who attended Wyo tech college .who fraudulently got students to take out more loans than neccessary ,lied about job placments&carreres.The education department was made to protect students from this types of fraud and all they’ve done is try to collect for fruad they aloud these fraudulent colleges in trap students in to debits and loans that were contracts fruadulantly took out in students names based on fraudulent promisses.we owe neither the department of education nor the colleges for fruaded contracts and lies based on any signed contracts and neither the courts ,nor debit collecting companys who want to collect on false fraudulent contracts should be allowed to collect for any fraudulanlty loans students took out to attend these fake schools&any amounts students have payed toward these fraudulent loans should be paid back to students with interest and any harm brought apone students by credit buerrues reports of this fraud should also be paid punitive damages.the education departments job is to protect student s and if they can do there damn jobs they should be abolished by the federal or state goverment.not keep trying to collect on fraudulent loans they aloud these colleges to keep collecting on knowing the fraud was taking place &continue to entrap students in fruaded phoney contacts&loans.Enough is Enough this has dragged out way to long decades I’ve been trying to clear my name and get forgiveness for these fruaded loans

  • TiShunda Ingram January 21, 2020

    I am also a former student of of Corinthian and is currently in a garnishment with Department of Education. How can I get added to this class action suit?

  • Deandra Riley January 21, 2020

    I am a former Corinthian College student and. I have a borrower defense application pending that I submitted about 3 years ago.

  • Deseree Rubio January 21, 2020

    I am also a former Corinthian student
    Please contact me about this. My tax return was taken last year.

  • Jessica Sparks January 21, 2020

    Please add me. I attended AIU and graduated in 2009 and have been making payments without much headway. I do have a borrower’s defense app completed and filed. But no word.

  • Amber Johnson January 21, 2020

    Please contact me about this my tax return was taken more than once and i am a former Corinthian student.

  • Suzanne Schoales January 21, 2020

    Please add me. I attended in 2010, in the pharmacy technician program. I’ve had my tax returns taken for repayment of this loan. I can’t even get a job using the certificate I was given and I was at the top of my class, tutored other students and graduated Suma cum laude. It’s ruined my credit! I’ve tried getting out of it and haven’t been able to at this time. I know others that I went to this school with, who have been released from any financial repayment to the US Department of Education! What do I need to do to be part of this law suit and get released from this loan for going to this useless school?

  • Felicia R Reddick January 21, 2020

    add me in

  • Marjorie Wills January 21, 2020

    Add me

  • Nakiesha Williams January 21, 2020

    I was told I had to pay for the loans even though the college was at fault. My request was denied for appeal. I need to be added to the list.

  • angela brown January 21, 2020

    I have applied for load forgiveness and been denied due to the school closing shortly after attending and withdrawing due to a required externship never being aquired by the school who required it as part of the certificate program. When I checked my loan disbursment was submitted just 2 days before leaving on a temp loa. When I was ready to return to coplete the last 3 modules the school had been purchased by another company and the schedules changed eliminating the early class completely and I was no longer able to attend due to only 2 sets of class times. I am stuc with debt ruining my credit and preventing me from advancing financially in life for the past 8 years I am unable to repay to ever increasing cost of interest added to my loan for a shotty education in afor profit non degree providing sham of a school. Yes add me to your list as I believe I have sufferred enough due to this debt

  • Patricia Hipps January 21, 2020

    Add please

  • Celeste Felice January 21, 2020

    I attended from.2009 to.2011 to get my MS in criminal justice.was promised law schools would accept my degree from CC. They did not,3 apps to law schools,3 rejections due to CC accreditation.now im 120K in debt with the Graduate plus loans they told me I had to take out to cover my degree costs.Dept of Ed refuses to accept My disability discharge,nor have I heard back for my app for “Borrower defense to Repayment”.
    Devoss is Screwing Students,We Need Help,we have Worthless Degrees from Corinthian.

  • Marty Pedicini January 21, 2020

    I attended and after contacting the US Dept of Education for over 2 years, they finally sent me an email stating my loan discharge is approved. It further stated the amount to be discharged will be determined in 90-120 days. I did pay some until they placed in deferment. At one time all loans were removed from my credit report, then after 6 months passed while they were still in review, they reappeared on my report. Now I’m waiting for the amount to be determined so they can be removed permanently. Please add me.

  • Nadine Romo January 21, 2020

    Please help me

  • Moneekia Hill January 21, 2020

    Add me please

  • Shavonne Blackburn January 21, 2020

    I attended 3 different corinthian colleges and applied several times to have forgiveness on these loans. I have never heard anything back from them and there are about 65,000 of student loan debt still showing on my credit for corinthian college. I cant even apply for flight school because my loans are maxed out.

  • Cord Swerny January 21, 2020

    Please add me to this lawsuit and email me the appropriate paperwork.
    Sincerely
    Cord

  • Kathy January 21, 2020

    I already received something in my email and in the mail stating I am added to the lawsuit. I went to Everest in Michigan and they lied about everything.

  • Myisha Hagler January 21, 2020

    I went to Everest Institute in Maryland , Graduated in 2009. They closed about 2 years afterwards

  • Robyn Hillman January 21, 2020

    I was 2 weeks away from graduation when Heald closed . I have asked for loan forgiveness for 5 yrs and they say I was given it but yet it shows as a negative on my credit … I want it off and I want the collection effort to stop !

  • Alain Michael January 21, 2020

    Add me please

  • Latoya Ravizee January 21, 2020

    I went to Sanford Brown for ultrasound program and found out after it was almost time to graduate, that the program was not accredited and then was stuck with student loan debt

  • Karla January 21, 2020

    I went to a medical billing coding school and they screw me up did not even get placed at a job or externship. Add me too please

  • Sherrie Neal January 21, 2020

    I attended Heald/Corinthian’s ! And have been dealing with this nonsense for at least 4 yrs! So they are not asking for payments but interest is still accruing!

  • Renee Lapearl January 21, 2020

    I went to Sanford brown in cranston ri and they closed down 2012 or 2013.

  • sharon January 21, 2020

    I went to heald and got screwed over. Couldn’t get job placement and i didnt attend graduation and they never snet me my diplma in the mail. this place is a crock

    • Ella brawner January 21, 2020

      I went to Everest in Santa Ana CA in 2013 and graduated in 2014 An never received my certificate of completion because the school closed

  • Rory Bybee January 15, 2020

    I attended Corinthian college at Las Vegas college at 170 Stephanie in Henderson Nevada from 04 /2005 to 07/ 2007. Corinthian College lied to students even then claiming that their credits would transfer to other schools, they claimed to have job placement assistance and that employers would honor their degrees. Students who attended during this time did not have as many recourse and ended up paying their student loans and not able to file for borrowers defense. I am currently paying on a student loan taken out when I attended school there that I defaulted on due to unsteady employment I was not able to pay and my loan went into collection. I currently work part time on call and have a hard time making payments on the loan.

  • Nina M Helme January 15, 2020

    So why are we all still being penalized for this? I can’t get anything done because this has screwed up my credit is bad. I have lost places to live because of my credit the opportunity to purchase a car because I am in debt and way pass due on several student loans I got for this school. What about the money that I started to pay into my loans before this hit? Are we suppose to continue to sit back and have this mess up our lives more? Come on we all need some resolution on this. I know I am not the only one there are tons of us. HELP

  • Michelle Balducci January 14, 2020

    Add me as well

  • J. Collins January 14, 2020

    This happened to me but I attended my local beauty school. Have no resource of where to find help. DOE is of no help, no body seems to have any solutions. I think it’s fraud, because it’s the government it’s acceptable I guess.

  • Marshia Henderson January 13, 2020

    I’ve submitted my application over 2 years ago and still havent heard anything. It’s a shame that we have to go through this. This is messing up people’s credit. The ability to purchase a house amongst other things. All while intrest keeps rising .

  • Amy Green January 13, 2020

    Absolutely!

  • Marcia Nupp January 13, 2020

    My husband went to Wyotech in Daytona and it closed and debt was supposed to be removed but it only partially was.

  • ADRENA January 13, 2020

    How would I know if I’m eligible? I attended Everest as well.

    • Nina M Helme January 15, 2020

      Go to the web site they have in here and it will help you.

    • Nina M Helme January 15, 2020

      You can see if your eligible on the web site it will ask you done questions. Most I believe received letters also.

  • Candace January 13, 2020

    I attended everest college. I have negative marks on my credit report. How do i know if im elegible?

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