We've covered student loan debt in past blogs, especially when discussing the almost crippling amount of debt with which some students exit university. While excess student loan debt can be difficult to deal with as someone entering the workforce in a particular industry, some cases might be even more difficult for current or former students. What if you feel that the college you attended defrauded you in some way?
As of early 2015, that was the case for some former and current students of Corinthian Colleges, an organization with numerous campuses in the country. The colleges were forced to close by the federal government, and the organization decided to sell some campuses and close others. Because of the issues surrounding the college, students who attended based on loans have sought information from the Department of Education about possible loan forgiveness.
According to the Department of Education, after some measures to sell some of the college campuses and a plan to teach-out the rest of the students, Corinthian made an abrupt decision to close 30 campuses. Those students were left in the lurch, and the Department of Education took steps to ensure anyone attending the schools that closed suddenly in April could seek loan forgiveness.
The department also addressed loan forgiveness options for students who felt they were defrauded by the college. Students with a grievance can approach the process, even if they were not in attendance at one of the campuses that suddenly closed.
Federal legislators continue to call for debt forgiveness for students involved in the Corinthian issue. According to reports, 17 federal lawmakers are calling for automatic forgiveness of loans associated with Corinthian.
Whether you've been defrauded by a college or you simply have too much debt for your current situation, there are legal options. In a case of fraud, you might seek recompense from the organization; in other cases, debt restructuring or negotiation can provide some relief.
Source: Federal Student Aid, "Information about Debt Relief for Corinthian Colleges Students," accessed Oct. 09, 2015