Why 41,000 former for-profit college students could be eligible for loan forgiveness

August 21, 2017
  • Industry News

Tens of thousands of students who attended Corinthian Colleges, a now-defunct for-profit college chain, could be eligible for student loan relief.

The Consumer Financial Protection Bureau as well as several states attorneys general announced a proposed settlement Thursday, which if approved, would require private equity firm, Aequitas Capital Management, to forgive $183.3 million worth of student loans that the firm helped fund for former students of Corinthian Colleges. About 41,000 students could be eligible for debt relief under the agreement, which is subject to approval by a U.S. District Court judge in Oregon, where Aequitas was based.

“Tens of thousands of Corinthian students were harmed by the predatory lending scheme funded by Aequitas, turning dreams of higher education into a nightmare,” CFPB Director Richard Cordray said in a statement.

Read more at MarketWatch: http://www.marketwatch.com/story/41000-former-for-profit-college-students-could-be-eligible-for-student-loan-forgiveness-2017-08-18