Corinthian’s bankruptcy filing Monday morning came as a group of former-Corinthian students lobbying for blanket forgiveness of their debts said they canceled a meeting with the U.S. Department of. May 04, · The troubled for-profit giant Corinthian Colleges filed for Chapter 11 bankruptcy Monday, one week after the company announced it was immediately closing its . May 04, · Twenty years after opening its doors, Corinthian Colleges has officially gone bust. The for-profit education company filed for Chapter 11 protection Monday. The filing is not a Missing: robert basic.
Corinthian eventually provided more than 1. Ultimately, the Education Department agreed to provide Corinthian with enough federal funding to keep operations going as it attempted to sell some of its assets and wind down the others. That process was still going on until April 22 when the last potential buyer for its remaining schools withdrew from the process, forcing the immediate shut down. But during the roughly month long process, Corinthian did manage to sell 50 campuses to ECMC Group, a nonprofit education company that specializes in the collection of student loan debt.
Since then, hundreds of former students have organized under a group called the Debt Collective and began refusing to repay student loans, arguing that all Corinthian students should receive blanket student loan forgiveness because of the fraud allegations. Bankruptcy Court in Wilmington, Del. Write to Stephanie Gleason at stephanie. All Rights Reserved. Skip to Main Content Skip to Search.
Dow Jones, a News Corp company. Related: Why Corinthian students are refusing to pay their loans. Founded in , Corinthian's network of for-profit schools once included campuses across the country, where about 74, students were enrolled. But since last July, the Department of Education has forced the company to close or sell off its locations over concerns about its high-interest loans and misleading information.
Even before the shutdown plan was announced, Corinthian had already spent years in court defending itself against charges it had allegedly preyed on low-income people with expensive loans. Over the past year, things haven't gotten better for the embattled education company, which faces a slew of lawsuits brought by attorneys general in nine states, including California, Massachusetts and Wisconsin.
Related: University of Phoenix has lost half its students. Federal loans won't cover such high tuition, so students often had to take out private loans. The Consumer Financial Protection Bureau alleges that Corinthian kept tuition high in order to force students to borrow from the college at higher rates. Corinthian also allegedly used illegal and abusive tactics to collect on that money while students were still enrolled in school.
Students who were roped into high interest loans have seen some relief. Related: My college degree is worthless. Meanwhile, a group of former Corinthian students have stopped paying their loans and are pushing to have their debts, including federal loans, completely forgiven. The so-called Corinthian say they didn't get the quality education they were promised and that their very expensive degrees are worthless.