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

June 22, 2018
  • Advocacy
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  • Debt
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  • for-profit colleges
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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.

The department was then ordered to stop collecting debts from the four students who represent a class in a lawsuit challenging the debt relief scheme.  

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