Just last month, we were celebrating the debt relief extended to students of Corinthian Colleges, the for-profit school accused of deceitful, abusive practices. Now we’re hearing from real-life Corinthian students whose stories prove more must be done.
They call themselves the Corinthian 15, a group of students reportedly on a “debt strike,” refusing to pay for something they did not receive – a quality education from a reputable institution.
How did the debt relief fall short?
First, not all students qualified for relief.
Second, those who did qualify for relief were only forgiven 40 percent of their loans.
What Corinthian Allegedly Did Wrong
As I blogged in September of last year, the Consumer Financial Protection Bureau (CFPB) alleged that Corinthian Colleges:
- Inflated tuition as a means of forcing students to take out Corinthian’s private “Genesis” loans
- Charged interest rates more than twice as high as federal loans, knowing 60 percent of students default on such loans within 3 years
- Bullied students into making payments while still in school
- Gave bonuses to employees for successfully collecting unpaid debt
- Manipulated job placement statistics
- Considered the provision of Craigslist job ads a “career counseling” service
What the Corinthian 15 Have to Say About It
Tricked into believing Corinthian cared…
“I was excited to attend Everest College online because they promised to help me find a well-paying career. But they lied to me and took my money. Not only did the school fail me, but the Department of Education failed me because it is their responsibility to make sure that these schools provide a quality education at an affordable cost at a scam-free school.” ~Latonya Suggs, Ohio
“College was foreign territory for me. Neither of my parents attended, so I was on my own when it came to understanding how the system works. Corinthian (Everest’s parent company) did a great job making me believe that they cared.”~Makenzie Vasquez, California
“As a mother of two children, I could not attend a regular college. Everest guilted me into enrolling in an online program by playing on my emotions. They called me several times per week to convince me that I would be better able to provide for my kids if I earned a degree from their school. ‘Why wait?’” ~Dawn Thompson, Illinois
“Though I studied hard and took my education seriously, high grades seemed easy to come by. I began to wonder if the teachers were legitmiate educators or if getting money out of me was the real goal”~DeAnda Wiley, Texas
Pressured into taking out student loans…
“Some Everest students were pulled out of class and told they could not return unless they signed loan paperwork. Other times, loan officers came into class and made us stop what we were doing to sign financial aid forms. We were told that we had no choice. If we didn’t sign, we couldn’t stay in school.”~Natasha Hornes, Missouri
“Corinthian took more than $10,000 of my Pell Grant money. They pressured me to enroll in a four-year program so they could keep taking out loans in my name for as long as possible.”~Amanda Shaffer, North Carolina
“I filled out a single FAFSA form, and Everest College continually took out loans in my name without my knowledge…. After graduation, I discovered that Everest took out as many as 13 loans in my name. I now owe $36,412. But the Department of Education has so far refused to cancel these debts.” ~Ashlee Schmidt, Florida
Left with nothing but debt and a worthless degree…
“For three years after graduation, the college refused to give me my diploma because I had an overdue balance. It took me almost six years in total to get a $48,000 degree. Now, all I have for my hard work and mounting debt are a piece of worthless paper.”~Paul Hicks, Texas
“I wanted to be a teacher. But no one will accept my credits, and I can never get a teaching job with an Everest degree.” ~Tasha Courtright, California
“My wages are now being garnished by a debt collection agency called Education Credit Management Corp. Later, I discovered that ECMC is the same company that is buying dozens of Everest Campuses. They way I see it, ECMC can’t lose. They make money if I pay my loans, and they make money if I don’t. The only people who lose are the students.” ~Jessica Madison, Florida
“There is a provision in the law that says closing colleges should offer students the opportunity to get a complete discharge of their loans. Instead of allowing us that option, we were pressured us into signing away our right to make a free choice. We were told we had to stay in the failing program and repay our student loans. I told the President that I wanted to withdraw. But she took me into an office and pressured me even further, insisting that I did not know my own mind. I refused to sign the form. But I was told that I could not withdraw. I wrote a letter of appeal, demanding a discharge of my debt. But my appeal was also denied. I was never given an adequate explanation. Now, I have thousands in debt from an institution that no longer exists.” ~Mallory Heiney
“Some of our private loans have already been cancelled. Everyone knows this company was scamming people. Everyone knows this debt is illegitimate. Yet, I am being harassed by collectors on a daily basis. Those collectors are working for the Department of Education who expect me to pay. The stress and anxiety is nearly unbearable.” ~Natalie Cardinal, Oregon
“All we have for our commitment to education is huge debt and a degree that is of questionable credibility.” ~Ann Bowers, Florida
