Ex-Corinthian Students Look To Bar Fed Loan Collections

Law360, San Francisco (April 30, 2018, 6:29 PM EDT) -- The U.S. Department of Education flouted federal law on agency rulemaking and violated the Privacy Act when it suddenly changed its student loan forgiveness policy, a putative class of former students of the now-defunct Corinthian College told a California federal judge Monday, arguing that without a temporary bar on the new policy, they’d be forced to choose between life necessities and loan defaults.

The students say that after a fraud investigation led to Corinthian College’s eventual closure, the Department of Education promised full discharge of their loans, but that more than 87,000 borrower defense claims have languished with the department. Then, in December, the department announced that it would use an...

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