Students of Rochester’s Everest Institute who took out federal student loans only to see the school close down may be eligible to have those loans forgiven.
New York Attorney General Eric Schneiderman says his office is notifying 3,000 New Yorkers who attended schools operated by Corinthian Colleges about a Federal Department of Education decision. The DOE has ruled that the for-profit college chain misrepresented the employment success of its graduates.
Schneiderman says Corinthian, which operated the Everest Institute, used false promises of career success to lure in students, leaving many with enormous loan debts and few job prospects. Corinthian abruptly shut down two years ago.
Schneiderman says former students will get a form in the mail to apply for loan cancellation. If they’re eligible, the Department of Education will wipe out their debt and any payments they’ve already made on their loans will be refunded.