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Education Department ordered to stop collecting debts from defrauded Corinthian College students | The Hill

A federal judge in California has ordered the Department of Education to stop collecting debts from all students defrauded by the for-profit Corinthian College, which shut down in 2015. The court ruled in May that the Department of Education had violated privacy laws by using Social Security Administration information to help it determine how much relief defrauded Corinthian students should get based on their earning capacity.

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Defrauded Students Will Stay Indebted | Courthouse News Service

Education Secretary Betsy Devos need not provide full debt relief to more than 60,000 defrauded students, but she must stop collecting on their loans, a federal judge said in court Monday. Lawyers for a proposed class of borrowers had asked U.S. Magistrate Judge Sallie Kim to revive an Obama-era policy that promised full debt forgiveness to students defrauded by the now-defunct, for profit Corinthian Colleges.

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Student Loans: Former Corinthian Colleges Students Win a Reprieve in Fight with Feds | USA Today

Thousands of former Corinthian Colleges students have won a preliminary victory in their court battle to cancel millions of dollars in federal loan debt for their studies at the scandal-scarred, for-profit schools. A judge late Friday temporarily barred the U.S. Department of Education from continuing to collect loan debts from the students based on allegations the agency violated the federal Privacy Act.

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