Court may help Corinthian students win relief

A judge's findings that the company misled students and violated the law could bolster Corinthian students' case for federal debt forgiveness.

News Story (California)

Andrew Khouri, Matt Hamilton
Los Angeles Times (LA Times)
March 25, 2016

Tags: For-profit college, Loan Forgiveness, Student Debt

Organizations mentioned/involved: Legal Aid Foundation of Los Angeles (LAFLA)


So far, the Department of Education has offered loan forgiveness if students attended a Corinthian school that closed in April, and if the college operator defrauded the student or engaged in actions that violated state law. Students must apply to receive loan forgiveness.

The judgment Wednesday affirms that the company violated California state law and give students a stronger argument that they should be entitled to debt forgiveness, said Robyn Smith, a senior attorney with Legal Aid Foundation of Los Angeles.

“This judgment should form a basis for student loan relief for students,” said Smith, who is working with former Corinthian students to apply for debt relief. “I would argue all students covered by this judgment get automatic relief” without having to apply.