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New Class Action Lawsuit Filed on Behalf of Defrauded Corinthian College Alumni

Posted on in Bankruptcy Attorney

New Class Action Lawsuit Filed on Behalf of Defrauded Corinthian College Alumni

If you have watched network channels such as Fox and CBS over the past decade, particularly during the daytime, you are probably familiar with Corinthian Colleges. Although you might not recognize the name “Corinthian Colleges,” you are likely familiar with the names of individual colleges within the Corinthian system, such as Everest and WyoTech. If you have been following the news, you are also likely familiar with the class action lawsuits that have been filed on behalf of the student who took out private loans to fund their education with Corinthian Colleges, only to be unable to find jobs after graduation and who now face financial distress and bankruptcy.

A new class action lawsuit was recently filed by Public Council, a pro bono interest law firm based in Los Angeles. This lawsuit is on behalf of more than 100,000 former Corinthian College students who are still saddled with debt from the private loans they took out to attend Corinthian's programs and facing harassment from debt collection agencies.

Students and Lawsuit Allege the Private Loans are Fraudulent

Many of the students involved in the class action lawsuit have already had their federal student loans forgiven. They are seeking relief from the loans provided by Corinthian Colleges, which are known as Genesis loans. The students allege that these loans were lured into taking out these loans with promises of career success, followed by receiving essentially useless degrees at a price up to 10 times the cost of a community college degree.

This is not the first time Corinthian Colleges has faced a lawsuit alleging that its student loan program defrauded students. In 2015, the Consumer Financial Protection Bureau (CFPB) won a judgment against the company in federal court. As part of this judgment, Corinthian Colleges paid $531 million to its former students in restitution. However, the students never actually received this money because the college had declared bankruptcy and closed in 2014. Today, many former Corinthian College students are in financial limbo, waiting to have their private loans forgiven so they can move past this chapter of their lives and toward financially secure futures.

Work with an Experienced Fox Lake Bankruptcy Attorney

If you are facing debt issues that are causing you to consider filing for bankruptcy, first speak with an experienced bankruptcy attorney to determine all of your legal options and your rights as a borrower. This is true regardless of the type of debt you are facing, such as credit card debt, student loan debt, or if you are unable to make your mortgage payments and you fear your home is in danger of going into foreclosure. Our team at Newland & Newland, L.L.P. is here to help you determine the right strategy to get your debt under control, whether that strategy include filing for bankruptcy or another method. Contact our firm today to set up your initial consultation with a member of our team. We serve clients in the North Chicago, Fox Lake, Zion, Winthrop Harbor, Waukegan areas from out our office located in the prestigious 180 North LaSalle street building in Chicago.

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