Corinthian Colleges, Inc., today announced the effective end of all operations. Given the wide public interest in this matter, and our Departments involvement in it, I wanted to provide some background and explain what has happened, as I have done in the past.
Corinthian’s closure follows a series of enforcement actions by this Department and by states aimed at protecting students and safeguarding the interests of taxpayers. The Department took action in June 2014, when Corinthian failed to respond to the Departments repeated requests for answers about questionable practices, including concerns that Corinthian was using false and misleading job placement data to market its schools and recruit students, and that it might be changing student grade and attendance data to hide performance problems. To mitigate further damage, the Department intensified oversight of Corinthian, ultimately leading to an agreement that put Corinthian on the road to closure. As first step in that process, Corinthian sold 56 Everest and WyoTech brand campuses in November 2014.
As Corinthian was attempting to manage its closure plans, the Department’s enforcement actions against the school continued. On April 14, the Department announced the results of one portion of its investigation – findings regarding Corinthian’s Heald campuses as it related to placement rate reporting. Corinthian’s misrepresentations regarding placement rates were serious, and the Department initiated a fine action of approximately $30 million against the school.
At the time the Department first took action on Corinthian, approximately 72,000 students were enrolled; today, about 15,000 remain at 30 campuses under the control of Corinthian in five states. The closure decision was made by the company, following Corinthian’s failure to find a buyer for the remaining campuses willing to abide by conditions put in place by the Department to protect students, borrowers and taxpayers.
These actions are part of a larger effort by the Department of Education to take strong steps to protect the interest of students and taxpayers. The Obama Administration has led unprecedented efforts to protect consumers from predatory career colleges. It has established new gainful employment regulations to hold career training programs accountable and ensure that students are not saddled with debt they cannot repay. These regulations ensure that programs improve their outcomes for students or risk losing access to federal student aid. Last year, the Department announced a new federal interagency task force to help ensure proper oversight of for-profit institutions.
Taking strong actions on Corinthian has been an important part of that effort. Given today’s announcement by Corinthian, our first and most pressing concern is for the students who were enrolled. We will contact Corinthian students about their options, and will post additional information on our website. In addition, the Department will send staff from our Federal Student Aid team to as many campuses as possible to talk directly with students. We are working with state community college systems to ensure that students have options to continue their education. Students at schools that have closed may be eligible for closed-school loan discharges; students who were enrolled at Corinthian in the last 120 days will receive information about their options from the Department and from loan servicers.
We will do everything we can to ensure that Corinthian makes good on its obligations to students and taxpayers to the extent possible. In addition, we encourage Corinthian students to pursue debt relief with their state, especially as many states have tuition recovery funds. In all of this work, we ask states to prioritize students and their educational best interests.
As Secretary Duncan has said, we will continue to hold the career college industry accountable and demand reform for the good of students and taxpayers. We hope Congress will join us in that effort.
Students seeking better life options should be assured that their investments will pay off in increased knowledge, skills, and opportunity. As Corinthian closes its doors for good, the Department will continue to keep students at the heart of every decision we make and will communicate with Corinthian students about all their options going forward. What these students have experienced is unacceptable and we look forward to working with Congress in an effort to improve accountability and transparency in the career college industry. A college education remains the best investment a student can make in his or her future, and this Administration will continue to work to make a college degree affordable for all students, to hold colleges accountable, and to safeguard the interests of taxpayers.
Ted Mitchell is the Under Secretary of Education
1) Not figuring out how much you’ll need to pay each month
As you’re trying to plan your life after graduation, it’s important that you know how much you’ll need to pay each month toward your student loans so you can budget your other expenses accordingly. To estimate what you’ll need to pay based on your income and loan debt, use the repayment estimator.
2) Choosing the wrong repayment plan
The repayment plan you choose is a major factor in determining how much your monthly student loan payment will be and how long it will take you to pay back your loans. The Department of Education offers several different repayment plans. To compare these plans based on your student loan debt and income, use the repayment estimator.
Make sure you’re enrolled in a plan that you can afford. If you’re struggling to make your monthly payment, consider switching to an income-driven repayment plan, such as our “Income-Based” or “Pay As You Earn” plans. If you have questions, need advice, or would like to switch your repayment plan, contact your loan servicer.
3) Not paying extra when you can
If you are paying interest on your federal student loan, that interest accrues each day. An easy way to save money on your student loans is to pay more than what’s required whenever you can. Here are some ideas:
- Make interest payments while you’re still in school and/or during your grace period
- Use your tax refund to make an additional loan payment
- Tack a few extra dollars onto your payment each month
4) Missing payments
If you’re feeling overwhelmed or don’t think you’ll be able to afford your next student loan payment, don’t just stop paying. Instead, contact your loan servicer as soon as possible. Not making your student loan payments is a big deal. It can result in default, which negatively impacts your credit score, and may affect your ability to borrow for things like a car or a home. Your loan servicer can recommend options to reduce or postpone your payment and keep your loan in good standing.
5) Paying for student loan help
There are countless ads online from companies offering to help you manage your student loan debt…for a fee, of course. But, did you know that you can get help with your student loans for free? The U.S. Department of Education provides FREE student loan help through our servicers.
Your loan servicer is the company hired by the U.S. Department of Education to help you manage, understand, and pay back your loans. They are there to help guide you through the loan repayment process, answering any questions you have along the way.
- Struggling to make your student loan payments? They can help you apply for an income-driven repayment plan or help you research options to postpone payments.
- Interested in student loan forgiveness? They have all the info you need.
- Want to consolidate your student loans? They can help with that.
Their services are provided free of charge, but they can only help you if they can reach you. Graduating and moving away from campus? Changing your cell phone number or e-mail address? Make sure you let your loan servicer know.
Nicole Callahan is a digital engagement strategist at the U.S. Department of Education’s office of Federal Student Aid.
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There are countless ads online from companies offering to help you manage your student loan debt…for a fee, of course. But, did you know that you can get help with your student loans for free?
If you’re a federal student loan borrower, the U.S. Department of Education provides free assistance to help:
- Lower Your Monthly Payment;
- Consolidate Your Loans;
- See If You Qualify For Loan Forgiveness; and
- Get Out of Default
Lower Your Monthly Payment
Are you out of a job or not earning very much? The federal government makes it easy for you to switch to a more affordable repayment plan at any time at no cost.
Your loan servicer – the company that collects your payments, responds to your customer service inquiries, and does other tasks related to your federal student loan – can help you decide which repayment plan best suits you. Click here for a list of servicers’ contact information and to find out how to look up your servicer.
Before you contact your servicer, check out the Repayment Estimator to get an idea of plans that may be available to you and to see estimates for your monthly payments.
Consolidate Your Loans
If you have multiple loans that you want to combine, you can apply for loan consolidation through StudentLoans.gov. The application is free, and there are no extra processing fees.
Some people find it simpler to group all their student loans into a single loan with one interest rate and one monthly payment. If you choose to consolidate your federal student loans with the U.S. Department of Education, you, too, may be able to take advantage of flexible repayment plans, including ones that base your payments on your income and family size.
See If You Qualify For Loan Forgiveness
Loan forgiveness is the process by which a borrower is released from their obligation to repay all or a portion of the principal and interest on a student loan. This also is known as discharge or cancellation. Loan forgiveness programs were created to encourage people to take certain types of jobs, to help borrowers with lower income jobs, and to compensate for permanent disabilities.
Many student loan companies advertise that they can help you get your loans forgiven. And sometimes, they simply are using the Department of Education’s free resources to help you, but are charging you to do so.
In fact, your loan servicer can help you determine if you qualify for loan forgiveness … for free.
Get Out of Default
If your loan is already in default, the debt relief companies know it and may target you with online and mobile ads, phone calls, and maybe even letters to your home address. By being in default, you’ve already incurred added interest, and you’re subject to collection fees. There’s no reason to add additional fees by signing up with a debt relief company.
Even if your loan is in default, loan consolidation is free and so is getting on a loan rehabilitation plan. Find out how to get out of default.
Protecting Your Log-In and Account Information
When student loan debt relief companies offer to manage your loan account, to do so, they will ask you to provide them with your federal student aid log-in information, or sign a Power of Attorney. Think about it: your log-in information is the equivalent of your signature on documents related to your student loan. If you share this information or sign a Power of Attorney, you are giving that person the power, literally, to take actions on your student loan on your behalf.
And if the debt relief company collects fees from you, but never actually makes any payments on your loan for you, you still will be responsible for those outstanding payments and late fees. You should protect your federal student aid log-in and account information as securely as you guard your ATM PIN.
Do You Think You’ve Been Scammed or Need a Resolution?
If you’ve already signed a contract with a debt relief company, and you think they have cheated you, call the Consumer Financial Protection Bureau (CFPB) at 1-855-411-2372, or submit a complaint online. Under “What type of service is your complaint about?” select Debt Settlement. Then, choose I have a problem with a company that I hired to help reduce or settle my debt.
Also, many state governments have an Office of Consumer Affairs or Consumer Protection either within or affiliated with the office of the state’s Attorney General.
If you’ve tried to work out your student loan debt issues with your servicer without success, you can contact the Federal Student Aid Ombudsman Group, which helps resolve disputes related to Direct Loans, Federal Family Education Loan (FFEL) Program loans, Guaranteed Student Loans, and Perkins Loans.
Remember, there are no student loan companies affiliated with the Department of Education that charge fees to help you manage your loan repayment. With the resources available to you through the Department of Education, you can successfully manage your loan repayment for free.
April Jordan is a senior communications specialist at Federal Student Aid.
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U.S. Department of Education Green Ribbon Schools (ED-GRS) began in 2011-2012, recognizing 78 green schools. In 2012-2013, ED added a District Sustainability Award and honored 64 schools and 14 districts. The 2013-2014 cycle had 48 school honorees and 9 district honorees. 2015 is the inaugural year of the Postsecondary Sustainability Award.
To celebrate Earth Day, U.S. Secretary of Education Arne Duncan announced the 2015 U.S. Department of Education Green Ribbon Schools (ED-GRS), District Sustainability Awardees, and the first-ever Postsecondary Sustainability Awardees. Joined by Managing Director of the White House Council on Environmental Quality Christy Goldfuss, Secretary Duncan celebrated the 58 schools, 14 districts, and nine postsecondary institutions chosen for their progress in reducing environmental impact and utility costs, promoting better health for students and staff, and offering effective environmental education, including civics, STEM and green career pathways.
Reiterating the Department’s support for sustainable schools, Secretary Duncan praised the honorees, “They demonstrate how sustainability concepts allow students to expand their traditional learning into the real world and to create change for the betterment of communities. This authentic learning engages students in all subjects, and bolsters their critical thinking, collaboration, and problem-solving capacities.”
The honorees were selected from a pool of candidates voluntarily nominated by thirty state education agencies across the country, with honorees selected from 28 of these jurisdictions. The schools serve diverse populations, with 52 public and six private schools, including 35 elementary, 19 middle, and 17 high schools, with several offering various K-12 variations. Forty-seven percent of this year’s honorees serve disadvantaged students, 22 percent are rural, and one-third of the postsecondary honorees are community colleges. Many also serve pre-K students, demonstrating that health, wellness, and environmental concepts can be taught to every student at every level. Honorees also show that their efforts not only improve health and learning, but also save schools money in utility costs which can be applied directly back to the classroom.
There are many tools and resources available to all schools, prekindergarten to postsecondary, to help with sustainable facilities, wellness practices, and environmental learning. You can find free resources available through the U.S. Department of Education’s Green Strides portal. You can also stay up to date through the U.S. Department of Education Green Ribbon Schools’ webpage, where you can connect with us through Facebook, Twitter, and the newsletter.
With the help of these tools, your school, district, or postsecondary institution may be eligible to apply in your state for one if its nominations to U.S. Department of Education Green Ribbon Schools in an upcoming year. Schools, districts and postsecondary institutions are encouraged to contact their state education authorities for more information on state applications. While a few state authorities don’t yet participate, hearing from interested schools may change that.
Andrea Suarez Falken is Director of U.S. Department of Education Green Ribbon Schools and ED’s Facilities, Health, and Environment Liaison.
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Cross-posted from the Department of Justice blog.
As we recognize Sexual Assault Awareness Month, I want to take a moment to reflect on the work of the Department of Justice’s Civil Rights Division to address and prevent sexual assault in schools and communities across the country. The impact of sexual assault can reverberate throughout a community, and the response to sexual assault within a community – from a residential advisor in a college dorm to a special victim’s unit detective – has a profound and lasting impact on the health and well-being of a sexual assault survivor.
Over the past few years, the division has engaged with law enforcement, prosecutors and schools to promote a comprehensive, integrated and effective response to reports of sexual assault. In doing so, we look to assist both schools and law enforcement in their efforts to protect students and address the needs of sexual assault survivors. As more people across the country are working together to prevent and improve the response to sexual assault, questions are frequently asked about the role of colleges and universities and why sexual assault is not handled exclusively by law enforcement.
Let’s be clear. Sexual assault is a crime and must be dealt with appropriately. However, the responsibility for addressing sexual assault does not stop at law enforcement. Schools also have a civil rights obligation to respond appropriately to reports of sexual assault.
Every school is responsible for providing a safe, nondiscriminatory environment to all students. Sexual assault can interfere with or destroy a student’s ability to get an education. We have heard from survivors of sexual assault who are fearful of being in the same classroom as their attackers or are subjected to harassment and retaliation by classmates for reporting the assault. We have heard from too many students who left school after being assaulted.
Under federal civil rights laws, schools must respond to reports of sexual assault, investigate where appropriate and provide a prompt, effective and impartial resolution. It is not enough just to respond to individual complaints from survivors. To effectively address and prevent sexual assault, schools need to respond to reports from all sources, especially when assaults are repeatedly perpetrated by the same student or at the same location. Having an appropriate and effective response system in place increases student confidence and trust in their school and the ability of the school to provide for their safety.
To provide a safe and nondiscriminatory learning environment, schools must be able to administer discipline where appropriate. This administrative response serves a unique and critically important function and must happen in addition to any criminal prosecution. A school disciplinary proceeding is not, however, a criminal proceeding, and should never be viewed as an alternative to criminal prosecution. Schools do not have the authority and are not asked to determine whether alleged perpetrators of sexual assault committed a crime.
That is the role of law enforcement. And law enforcement – including campus police, local police and prosecutors – play a critical role: as one of the key responders to reports of sexual assault, and as partners with schools, victim advocates and others in the effort to protect the community from sexual assault. Indeed, the importance of communication and coordination among each of these partners in both responding to and preventing sexual assault cannot be underestimated. In our experience, when everyone works together, survivors of sexual assault are more likely to report and to receive services, exhibit greater confidence in the criminal justice and school systems and feel far better supported throughout the process.
In Missoula, Montana, to address serious shortcomings in how the University of Montana-Missoula and local law enforcement investigated and responded to sexual assaults, the division reached agreements with the university, its campus police, the city police department and the county prosecutor’s office. This first of its kind multi-pronged approach to combating sexual assault – which reaches from the campus to the courthouse door – has resulted in significant improvements in the response to sexual assault within the Missoula community. We, along with our colleagues at the Department of Education’s Office for Civil Rights, are working with leaders from across the community as they implement these agreements so that whenever sexual assaults are reported, policies and procedures are already in place; first responders and investigators are trained to handle the report appropriately; and supports and services are more readily available and better coordinated. It is with this kind of focused attention and collaboration that sexual assault can be eradicated from our communities and students can feel safe and supported in school.
Vanita Gupta is Principal Deputy Assistant Attorney General for Civil Rights.