More than 500 Iowans have college debt from Corinthian Colleges discharged
Iowa Attorney General Tom Miller on Tuesday commended the U.S. Department of Education’s action last week to cancel $5.8 billion in student loan balances for students who attended Corinthian Colleges, a defunct for-profit college chain. In Iowa, more than 500 students were eligible for debt cancellation when the school closed in 2015; they are among more than 560,000 borrowers who will have their federal student loan balances discharged. “This will provide long-needed relief for student loan borrowers in Iowa and across the nation,” Miller said in a press release. “Our office has been working with other attorneys general to get this relief for more than seven years, and we are proud to see those efforts lead to this outcome.” Miller led a multistate investigation into Corinthian before its collapse. The investigation found that the school lied to students about future job prospects, falsified data on graduate success, and wrongly claimed students could transfer credits to other colleges. In addition, Miller and a group of attorneys general worked with the Consumer Finance Protection Bureau to recover $183.3 million in private student loans for 41,000 borrowers through a nationwide settlement with Aequitas Capital Management Inc., a lender that was accused of making predatory loans to students at Corinthian.