The federal government on Monday (6/8/15) announced sweeping measures to help ease debt for thousands of now financially and academically stranded students of the now defunct Corinthian Colleges.
As part of Monday’s actions, the federal government announced it was extending the period of eligibility for students applying to discharge their federal student loans — asking for forgiveness, cancellation or discharge of their loans — back to June 20, 2014. Normally, the eligibility period to ensure that the students would no longer be expected to repay the loan would end within 120 days of the closing date. Other forms of debt relief may cover students whose attendances goes back well beyond the new June 2014 cutoff.
For-profit Santa Ana-based Corinthian was at the center of fraud allegations when officials closed their last of 28 campuses in April — just weeks after the U.S. Department of Education issued a nearly $30 million fine for misrepresentation.