Education

LOS ANGELES – As students prepare to enroll in college this year and take out loans to pay for higher education, Attorney General Kamala D. Harris issued the following tips, encouraging Californians to know all the facts—and avoid potentially harmful scams—before taking on or paying off substantial student loans.  

In advance of enrolling in a college or university, students should thoroughly research the types of financial aid they may qualify for and determine which loans, scholarships, grants, or work-study programs would be most beneficial to their personal situation.   Student borrowers should be aware of factors that may impact their ability to repay student loans, such as changing the status of student enrollment, future job prospects, the amount of interest accruing on loans, and any loan prepayment penalties.          

Students should also be cautious of private companies that charge for what would normally be free student loan services.  Certain companies may impose fees for assisting with federal student loan consolidation or in submitting the Free Application for Federal Student Aid (FAFSA), without disclosing that such services are actually free.  Student borrowers are strongly encouraged to use free student loan resources to avoid being charged unfair and unnecessary fees.

Consumers who take on student loans should be sure to make their payments on time.  Contact the student loan servicer promptly to discuss options if repayment of loans becomes difficult.  Eligible borrowers may be able to lower monthly payments or may be eligible for loan deferment, forbearance, or cancellation.  Late payments could adversely affect credit scores and harm future ability to make purchases or qualify for additional credit.    

What to look out for

The Attorney General offers student borrowers the following tips in order to educate themselves and take advantage of resources regarding student loans:

• Before taking on a student loan, research the types of financial aid that are available and consider ways to lower the cost of higher education programs.  To the extent possible, carefully consider job prospects, including salary information, in deciding whether and how to take out student loans.

• Do not sign a loan document electronically without first reviewing and understanding the terms of the loan agreement.  Make sure to understand how much money is being loaned, the interest rate of the loan, and when the loan will need to be repaid.  Inquire about the available options if loan payments cannot be made on time (which can come up during periods of unemployment, economic hardship, or enrollment in a graduate program).

• Be aware of the differences between federal and private student loans.  Federal student loans may offer lower, fixed interest rates, while private student loans may have higher, variable interest rates.  Additionally, federal student loans generally do not need to be repaid until the student graduates and loan consolidation and income-based or other more flexible repayment plans may be available.  In contrast, private student loans may need to be repaid while the student is still in school and may not offer deferment or forbearance options.    

• Be wary of private companies that charge a fee for assisting with filling out and submitting the FAFSA.  Such companies are unaffiliated with the government.  The U.S. Department of Education provides free assistance with filling out the FAFSA.

• Beware of companies that charge an application fee and monthly fees for assisting with consolidating federal student loan debt.  Consolidating federal student loans is FREE through the Federal Direct Consolidation Program.  The loan consolidation process combines several federal student loans into just one loan.  Consolidated loans may be eligible for various repayment plans, including income-driven repayment plans. 

• Ask about the student loan’s grace period and be aware that the grace period may change depending on circumstances.  Engaging in active military duty, returning to school, and consolidating loans may alter grace periods.  Make sure to stay in contact with student loan servicers to stay informed regarding the repayment time frame.
• Defaulting on student loans will adversely affect credit and will impede the ability to make purchases down the road.  It is important to stay in touch with student loan servicers, especially if there is a difficulty in making timely payments.

HELPFUL RESOURCES

The U.S. Department of Education provides information on the types of federal aid available to students.  The website includes basic eligibility requirements for federal aid.  Additionally, the FAFSA4caster assists consumers with calculating the amount of federal student aid for which they are eligible.

The U.S. Department of Education offers a comparison of federal student loans and private student loans. 

The Federal Student Aid website also helps student borrowers learn about federal loan consolidation before applying for consolidation.  Students who have questions regarding the loan consolidation process can contact the Loan Consolidation Information Call Center at (800) 557-7392. 

Finally, the Federal Student Aid website has information on scholarship opportunities that may help students fund their educational goals. 

What to do if you are the victim of a STUDENT LOAN scam

The Office of the Inspector General at the U.S. Department of Education investigates education programs and collects complaints regarding fraud or schemes related to the misuse of federal student aid.  If you are the victim of a student financial aid scam, please contact the Office of Inspector General’s hotline.

The California Department of Justice protects the rights of consumers and collects complaints on student loan scams in order to identify patterns of wrongful activity.  To submit a complaint to the California Department of Justice regarding a student loan scam, please use one of the following complaint forms:

English: https://oag.ca.gov/contact/consumer-complaint-against-business-or-company.  

En Español: http://oag.ca.gov/sites/all/files/agweb/pdfs/contact/business_corpform_sp.pdf

中文: http://oag.ca.gov/sites/all/files/agweb/pdfs/contact/business_corpform_chin.pdf

Tiếng Việt: http://oag.ca.gov/sites/all/files/agweb/pdfs/contact/business_corpform_viet.pdf

SAN FRANCISCO - Attorney General Kamala D. Harris today issued the following statement in response to the ruling by the U.S. Supreme Court in the case Friedrichs v. California Teachers Association.

"Today's ruling protects the right of public employees working in our schools, universities, hospitals, and police agencies in California and across the nation to negotiate fair wages and benefits, without restricting any individual employee's freedom of speech. While this decision is a victory, we must keep fighting to protect the ability of working families to make a living wage and pursue the American dream."

LOS ANGELES – Attorney General Kamala D. Harris today announced that her office has obtained a $1.1 billion judgment against defunct Corinthian Colleges, Inc. (CCI) for their predatory and unlawful practices. While CCI filed for bankruptcy in May 2015, this judgment can help secure further relief for struggling students.

Former Corinthian Students should visit the Attorney General’s Interactive Tool for tailored information to help them locate needed resources and relief.

In October 2013, Attorney General Kamala D. Harris led the charge against CCI and its subsidiaries that operate Everest, Heald, and Wyotech colleges, filing suit seeking to put an end to abusive practices that left tens of thousands of students under a mountain of debt and useless degrees. CCI filed for bankruptcy in May 2015. Today, the Court granted a default judgment against CCI.  In the judgment, the Court ordered restitution on behalf of students in the amount of $820,000,000 and civil penalties totaling $350,025,000, for a total of $1,170,025,000 in monetary relief. 

“For years, Corinthian profited off the backs of poor people – now they have to pay. This judgment sends a clear message: there is a cost to this kind of predatory conduct,” said Attorney General Harris. “My office will continue to do everything in our power to help these vulnerable students obtain all available relief, as they work to achieve their academic and professional goals.”

Attorney General Harris’ original complaint alleged that CCI intentionally targeted low-income, vulnerable Californians through deceptive and false advertisements and aggressive marketing campaigns that misrepresented job placement rates and school programs. CCI deployed these advertisements through persistent internet, telemarketing and television ad campaigns. The complaint further alleged that Corinthian executives knowingly misrepresented job placement rates to investors and accrediting agencies, which harmed students, investors and taxpayers. The Attorney General filed many of these documents in Court before entry of the Court’s judgment, and they are now publicly available.

In the Final Judgment, the Court found, among other things, that:

• From at least 2009 until the closure of its schools, many of CCI’s representations and advertisements related to job placement were untrue and/or misleading.   In numerous cases, the placement rate data in CCI’s files show that the actual placement rate is lower than the advertised rate.  The placement rates that CCI published were systematically false, misleading, erroneous and/or failed to comply with applicable state and federal regulations and/or accreditor standards.  In addition, many of these published placement rates could not be substantiated using CCI’s own internal placement data and files. 
• CCI did not offer ultrasound technician programs, x-ray technician programs, radiology technician programs, or dialysis technician programs in California.  Despite this fact, from at least 2010 until the filing of this action, CCI ran millions of ads stating that they did offer those programs.  CCI executives knew that these false ads misled students.
• CCI unlawfully used the official seals of the United States Department of the Army, the United States Department of the Navy, the United States Department of the Air Force, the United States Marine Corps, and the United States Coast Guard.
• CCI’s enrollment agreements contained unlawful clauses.
• CCI engaged in unlawful debt collection.
• CCI failed to discloses its role in the Genesis Private Student Loan Program.
• CCI misrepresented the transferability of credits.
• CCI misrepresented its financial stability to students.

In April 2015, Attorney General Harris and eight other state Attorneys General sent a letter to the U.S. Department of Education urging immediate debt relief for the students who attended Heald College and other CCI campuses.  In May 2015, Attorney General Harris sent a letter to U.S. Department of Education Secretary Arne Duncan, asking the Department to exercise its authority under closed school discharge regulations to provide aid to students affected by Corinthian’s predatory practices.  In June 2015, after calls from Attorney General Harris for substantive relief for students suffering from crippling debt, the U.S. Department of Education announced expanded debt relief options for Corinthian students, which resulted in many more students being eligible for relief.  

Attorney General Harris remains committed to protecting vulnerable students, most recently through the Department of Education’s negotiated rulemaking sessions on borrower defense, where Attorney General Harris called for revisions to proposed borrower defense regulations to ensure meaningful debt relief for students misled by predatory for-profit colleges. 

A copy of the judgment is attached to the electronic version of this release at: https://oag.ca.gov/news 

LOS ANGELES – Attorney General Kamala D. Harris today, along with seven states, sent a letter to the U.S. Department of Veterans Affairs (“VA”), urging the Secretary to use his authority to restore educational and vocational rehabilitation benefits to thousands of veterans victimized by predatory practices carried out by for-profit schools such as Corinthian Colleges, Inc. (“Corinthian”).  The letter also asks VA Secretary Robert McDonald to take steps to ensure that veterans are given full and accurate information about the risks associated with using their benefits at certain schools.

“We honor the service and sacrifice of our veterans by ensuring that when they return home, they have access to benefits that will help them transition to civilian employment and build lives for themselves and their families,” stated Attorney General Harris in the letter.

“Rather than being honored, the veterans who enrolled in Corinthian schools were cheated out of these benefits.  ED has acted to remedy the harms suffered by student borrowers who were defrauded by Corinthian and other unscrupulous institutions—we respectfully urge you to act in harmony with your sister agencies and offer similar relief to student veterans who were harmed by precisely the same misconduct,” the Attorney General added. 

The letter specifically calls on the Department of Veterans Affairs to do three things:

1. Restore Benefits to Veterans Who Attended Institutions that Utilized Erroneous, Deceptive, or Misleading Advertising, Sales, or Enrollment Practices

The letter urges the VA to implement processes to restore G.I. Bill and Vocational Rehabilitation and Employment (“VR&E”) benefits to student veterans who used those benefits at schools found to have engaged in misleading and deceptive behavior.  This relief should be provided when a regulatory or enforcement action is taken by the U.S. Department of Education, a State Approving Agency, or a State Attorney General after a showing of misconduct, or when a court enters a judgment against a school, or upon application by a veteran or group of veterans alleging that an educational program or college has been deceptive or misleading.

2. Ensure that Veterans Have Full and Accurate Information

The letter urges the VA to fully educate veterans about their options and risks when choosing a school.  The VA should inform student veterans about the potential consequences of utilizing educational benefits at schools that have been subject to investigations or lawsuits. Early warnings and information will help veterans make informed choices.

3. Support the Efforts of State Approving Agencies and Attorneys General

Lastly, the signatories urge the VA to support states’ efforts to protect veterans from misconduct by for-profit institutions. Ensuring that the VA works collaboratively with and supports the efforts of the State Approving Agencies and Attorneys General in this context will help protect student veterans from future misconduct.

This letter is a continuation of Attorney General Harris’ efforts to protect and provide relief to students of for-profit schools. In 2013, Attorney General Harris filed a lawsuit against Corinthian for false advertising and deceptive marketing targeting vulnerable, low-income students and misrepresenting job placement rates to potential and current students, investors and accrediting agencies. Corinthian closed all of its California campuses on April 26, 2015.  Attorney General Harris has since called for the U.S. Department of Education to relieve the student loan debt of thousands of students who attended Corinthian.

Attorney General Harris is committed to protecting veterans and the benefits they earned through their dedicated service to our country. Last year, an alarming number of “pension poaching” scams targeting senior veterans and their survivors were reported to the California Department of Justice’s Public Inquiry Unit. Attorney General Harris consequently issued a consumer alert urging veterans to be wary of such schemes.

In November 2015, Attorney General Harris announced a stipulated judgment which resolved allegations that JPMorgan Chase (Chase) committed credit card debt-collection abuses against tens of thousands of Californians.  The Attorney General’s investigation and litigation further revealed that Chase violated the Servicemembers Civil Relief Act and the California Military and Veterans Code when it filed false declarations regarding military service and improperly obtained default judgments against servicemembers on active duty. 

The letter can be viewed here: https://oag.ca.gov/sites/all/files/agweb/pdfs/va-multi-state-letter.pdf. 

SAN FRANCISCO - Attorney General Kamala D. Harris today issued the following statement calling on the United States Department of Education (ED) to do more to protect students defrauded by Corinthian Colleges and other for-profit colleges.  Last week, ED held the second of three negotiated rulemaking sessions to determine how student borrowers can get relief from federal student loans when these loans were used at a school that abused and deceived the students.  Attorney General Harris’s office participated in the session as one of two representatives for state attorneys general and called repeatedly for greater protections for students.

“Too many students defrauded by for-profit colleges remain buried under mountains of student debt,” said Attorney General Harris.  “I call on the Department of Education to revise their proposed regulations to ensure meaningful debt relief is available to any student misled by a predatory college."

In the wake of the recent, public collapse of Corinthian Colleges, a joint investigation by ED and Attorney General Harris’s office found that job placement rates were widely misrepresented to enrolled and prospective Corinthian students.  Thousands of the school’s students have asked ED to discharge their federal loans because they were deceived by Corinthian’s inflated job placement rates. 

This issue is not limited to Corinthian Colleges. Other for-profit institutions have used similar dishonest tactics against their students, and it is expected that many more students will need to utilize this defense. 

Federal law, including ED’s regulations, gives students the right to have their loans discharged when their colleges have engaged in certain kinds of unlawful conduct—this right is referred to as a “defense to repayment.”  Yet current federal regulations provide little guidance on who may be eligible, how they should apply, or how ED will evaluate those applications.  Recently, Attorney General Harris’s office and other agencies have uncovered an extensive pattern of misconduct among many for-profit colleges, particularly regarding deceptive recruitment tactics.  As a result of the sharp increase in the number of student borrowers asserting their rights, ED initiated a “negotiated rulemaking” process for interested parties to provide input on new regulations governing defenses to repayment when a school has abused and deceived them.  As part of the process, ED convened a committee made up of stakeholders—including state attorneys general, students, student advocacy groups, public schools, for-profit schools, and accreditors, among others—to voice their positions on what the new rules should say.  Congress imposes this negotiated-rulemaking requirement whenever ED seeks to issue new regulations about student assistance for higher education.

At the committee’s first meeting in January, Attorney General Harris’s office, along with other state attorneys general and student advocacy groups, stressed the need for meaningful, robust, and streamlined loan-discharge procedures for students who have been victimized by their school.  At a subsequent meeting earlier this month, however, ED unveiled proposed language that contradicts the intent of previous discussions by narrowing, limiting, and delaying student relief in the following ways: 

1. ED’s proposal unreasonably limits the categories of school misconduct that would give rise to a defense to repayment.  The proposal limits students’ rights to circumstances where the colleges either breached a contract or engaged in “substantial misrepresentations,” ignoring other categories of rampant school misconduct that violate state law. 
2. ED’s proposal includes a two-year statute of limitations for borrowers to assert a defense to repayment.  This is patently unfair given that there is no corresponding statute of limitations for debt collectors in going after students for federal student loans. 
3. ED’s proposal does not provide any procedure to grant broad, automatic relief to borrowers, even when it is clear that a predatory school has systematically abused and deceived large numbers of students through widespread practices.  In these clear-cut cases, there is no practical reason to deny relief or to put an additional burden on students to again prove their case. 
4. In cases where the school has not already closed down, ED proposes that the decision to grant a discharge be made by pitting the student against the school in an adversary process, effectively requiring the student to hire a lawyer and allowing the school to interfere with the student's right to obtain relief on a government loan.  Any fair process should be sufficiently simple and straightforward so that a student can navigate it successfully without legal representation.

Attorney General Harris continues to call for changes to the new regulations.  Fair and effective defense-to-repayment procedures (1) must look to state law as a basis to assert a defense; (2) must not be limited by any time period; (3) must provide procedures for automatic, global relief to students where it is clear that they are the victims of rampant school misconduct; and (4) must not permit the school to make the process burdensome and expensive.

Toolkit Available Online at oag.ca.gov/truancy/toolkit; Includes New Resources for Parents, Teachers, and Community Leaders to Boost Elementary School Attendance

SAN FRANCISCO – Attorney General Kamala D. Harris today unveiled an online toolkit designed to help local leaders address California’s elementary school truancy crisis. The toolkit, created in collaboration with the Ad Council and with the support of The California Endowment, provides school, community, and government leaders with resources to work with parents on their children’s elementary school absences and the long-term impact that chronic absence and truancy have on academic performance.  Educators can use these tools to engage parents – including via text message – about their child’s attendance and how to reduce absences. 

“Nearly a quarter of a million California elementary school students were chronically absent in the 2014-2015 school year, with sweeping implications for our state’s future,” said Attorney General Harris. “If we want to effectively address this crisis, we need to communicate to parents and teachers about how critical early attendance is to a child’s development. This toolkit will help teachers and community leaders discuss truancy with parents and help them to ensure their children are in class every day.”

The toolkit is the culmination of a statewide study conducted with parents of elementary school students and education experts to understand barriers to attendance and how best to address them. It includes data compiled from interviews in which parents discussed their perceptions of early-grade absences and what messaging would have the greatest impact on them. It also includes tips for school and community leaders on how to communicate the impact of early school absences to parents, as well as a letter that school and district administrators can send to teachers to help them improve communication with parents of students in their classrooms.

The study found that while parents have ambitious long-term dreams for their children, such as college admission, they often do not connect early-grade attendance to later achievement. Combined with barriers to attendance such as lack of transportation or health issues, these misunderstandings can lead to children missing too many days of school and falling behind as early as kindergarten.  The study also found that parents’ most trusted sources of information are teachers, who can best help them understand what is happening in the classroom and what resources are available to help families resolve barriers to attendance.  The study found that texting is most parents’ preferred form of communication with their children’s school.

In September, Attorney General Harris issued her third annual report on elementary school truancy and chronic absenteeism in California, In School + On Track 2015. The report found that California still faces a crisis in elementary school attendance: 230,000 California elementary school students are chronically absent – missing more than 10% of the school year – and more than 1 in 5 are truant, having three or more unexcused absences. Low-income students and students of color face even lower attendance rates.

The report also outlines significant progress made in the past year in increasing awareness of the importance of attendance within school districts, tracking attendance year over year, and rethinking discipline policies that remove students from the classroom. The report is available in its entirety online at: https://oag.ca.gov/truancy/2015.

In 2013, Attorney General Harris issued the first statewide statistics on California’s elementary school truancy crisis and directly linked public education to public safety and the economy. Students who are not reading at grade level by the end of third grade are statistically more likely to drop out of high school. Annually, dropouts cost California taxpayers an estimated $46.4 billion in incarceration, lost productivity and lost taxes.  The 2014 report released updated statewide data.

In February 2015, Attorney General Harris unveiled the Bureau of Children’s Justice, a unit within the California Department of Justice that works to ensure all of California’s children are on track to meet their full potential. The Bureau enforces criminal and civil laws to hold those who prey on children accountable; works with a range of local, state, and national stakeholders to increase support and improve outcomes for vulnerable children; and identifies and pursues improvements to policies impacting children.

Attorney General Harris has worked to combat truancy since she was District Attorney of San Francisco.  In the course of investigating factors contributing to the city’s violent crime rate, she found that 94% of San Francisco homicide victims under age 25 were high school dropouts. Then-District Attorney Harris formed a partnership with the school district to inform parents about their legal duty to ensure that their children attended school, provide parents of chronically truant students with wrap-around services and school-based mediation, and prosecute parents in the most severe cases where other interventions did not work.

In addition to the Ad Council and The California Endowment, organizations that partnered with the Attorney General’s office on the attendance toolkit include the California Department of Education, California Department of Public Health, California Teachers Association, California Federation of Teachers, California Alliance of African American Educators, Association of California School Administrators, California African American Administrators and Superintendents Association, California Association of Latino Superintendents and Administrators, California County Superintendents Education Services Association, California School Boards Association, California Charter Schools Association, California School Employees Association, California School Nurses Organization, California Association of School Counselors, LA Chamber of Commerce, Bay Area Council, Children Now, Fight Crime, Invest in Kids CA, La Opinion, School-Based Health Alliance, Campaign for Grade Level Reading, Keeping Kids in School and Out of Court Initiative, Partnership for Children and Youth, California Coalition for Youth, Communities in Schools-LA, LA Urban League, Youth Policy Institute, Community Coalition, Foster Ed-California, Parent Institute for Quality Education, Alliance for Children's Rights, Inter-Tribal Council of California, Partnership for Los Angeles Schools, California Family Resource Association, First 5 California, Los Angeles Education Partnership, Parent Advocate League, Children's Defense Fund, National Council of La Raza, and CDE Foundation.

LOS ANGELES – Attorney General Kamala D. Harris today issued the following statement applauding the California Department of Education for its efforts to collect statewide data on students who are chronically absent. The Attorney General has made the fight against elementary school truancy and chronic absenteeism a top priority. She issued  the first statewide report on California’s elementary school truancy crisis and sponsored legislation to address the issue.  

“Until now, California was one of a handful of states that did not track student attendance. I applaud the California Department of Education for taking this monumental step toward addressing California’s elementary school truancy and chronic absence crisis,” said Attorney General Harris. “I have called for this data collection since 2013 and was proud to sponsor a legislative package in 2014 that aimed to modernize California’s attendance records system and establish the support that schools, parents and communities need to ensure our students are in school and on track from kindergarten through high school. I look forward to working with our partners to build on this action and guarantee that every  child has the opportunity to succeed.”

In 2013, Attorney General Harris issued the first statewide report, In School + On Track, on California’s elementary school truancy crisis, which made a direct link between public education and public safety. Eighty-three percent of students who miss more than 10% of kindergarten and first grade cannot read at grade level by the end of third grade, which makes them four times more likely to drop out of high school. Annually, dropouts cost California taxpayers an estimated $46.4 billion in incarceration, lost productivity and lost taxes. 

The Attorney General issued subsequent reports in 2014 and 2015, reporting on the state’s on-going elementary school truancy crisis and the progress that has been made to address the issue. In School + On Track 2015 found that our state continues to face an attendance crisis, reporting that 230,000 students are chronically absent – missing more than 10% of the school year – and more than 1 in 5 are truant, having three or more unexcused absences. In addition, the report highlighted stark disparities in attendance and discipline for vulnerable students, including students of color, low-income students, and students in foster care. The report also highlighted the effects of chronic absenteeism in addressing issues such as unemployment, crime, economic development, public health and public safety. 

Each of the Attorney General’s reports stress the need to consistently and accurately track attendance data at the state level so that students do not fall through the cracks.    

In 2014, Attorney General Harris sponsored legislation to help schools, parents and government leaders effectively intervene when children are chronically absent, and improve local school districts’ and counties’ ability to track attendance patterns. The bills included efforts to assist school districts and county offices of education working with parents to address high truancy rates by giving them the tools to comply with attendance tracking requirements in the Local Control Funding Formula (LCFF), and a proposal to modernize the way California collects and monitors student attendance data. Two of the bills, AB 2141 (Hall, Bonta) and AB 1643 (Buchanan), were signed by the Governor. AB 1866 (Bocanegra), which would have required the data collection announced today, was vetoed.

LOS ANGELES – Attorney General Kamala D. Harris today issued this statement following oral arguments in the U.S. Supreme Court in the case Friedrichs v. California Teachers Association.

“California’s long-term prosperity depends on the right of hard-working Californians – including teachers, firefighters, peace officers and nurses – to negotiate fair wages, benefits and protections. This case is about fairness: While no employee should be forced to pay for a union’s political speech outside the workplace, if a union represents all employees in negotiating and administering a collective bargaining agreement, then all the employees ought to share the costs of that representation. This has been the standard for the last 40 years, and there is no reason for the Supreme Court to change course now. We must protect California’s interests, fair and effective bargaining procedures, and public workers’ First Amendment rights.” 

SAN FRANCISCO - Attorney General Kamala D. Harris will join a telephone press call today with incoming Secretary of Education John King and Under Secretary of Education Ted Mitchell to release new factual findings by the U.S. Department of Education, which are the result of a joint investigation by the Department and the California Attorney General.  The Department of Education analyzed job placement rates at Everest and Wyotech Colleges, as well as additional evidence provided by Attorney General Harris, and concluded that placement rates were widely misrepresented to both enrolled and prospective students. 

These findings will lead to enhanced and streamlined debt relief opportunities for thousands of former students at Everest College and Wyotech College campuses in California as well as students nationwide who attended Everest University online.  Corinthian Colleges, Inc. owned Everest and Wyotech Colleges, along with Heald College.

“Corinthian preyed on vulnerable students who are now buried under mountains of student debt,” said Attorney General Harris.  “Today’s joint investigation findings will expand the pool of Corinthian students eligible for streamlined student loan relief options, helping them rebuild their lives and pursue a brighter future. I thank the Department of Education for joining my office to keep Corinthian accountable for their actions and providing debt relief to students who were misled."

“I commend Attorney General Kamala Harris and her team for their collaboration in the effort to help defrauded Corinthian students receive the relief they are entitled to,” said Secretary of Education Arne Duncan. “The results of our joint investigation will allow us to get relief to more students more efficiently.  Helping wronged students is much easier when everyone—Congress, State Attorneys General, accreditors, authorizers and the Department—does their part to protect students and works together.  Our team welcomes help from anyone who wants to follow her lead.”

The factual findings will help students establish a case for “defense to repayment” loan relief (the process by which students may be relieved of loan obligations if their schools violated state law) on a program-wide basis to former Corinthian students who enrolled in programs for which Corinthian published false placement rates.  This assistance is vital to students who might otherwise face the difficult task of proving that they are entitled to relief on an individual, case-by-case basis.

The findings from this investigation apply to Everest and Wyotech locations in California, as well as Everest University online programs based in Florida, and add to the existing findings concerning programs at Heald College – which were also a part of the joint investigation with Attorney General Harris’s office.  The Department of Education expects these findings will allow it to simplify and expedite the relief process for tens of thousands of former students at Wyotech and Everest.  Investigations into Corinthian schools by the Department of Education will continue.

Following the April 2015 announcement by Corinthian Colleges, Inc. that it “substantially [ceased] all operations and discontinued instruction” at all Corinthian Colleges, Attorney General Harris announced an online “Interactive Tool for Corinthian Students” to help former Corinthian students learn more about what forms of relief may be available to them, based on their specific circumstances. 

The tool, available at http://oag.ca.gov/corinthiantool, was updated after the June 2015 announcement expanding streamlined relief to certain Heald College students and has now been updated to reflect new options now available for certain former Everest and Wyotech College students.  It prompts students to answer a short series of questions, which will result in a personalized resource sheet with information about types of relief they may be eligible for, information on free local legal aid organizations that may provide advice and assistance in applying for relief, and information on cost-effective educational opportunities in their geographic area. The Department of Education also has information on debt relief for former Corinthian students at www.studentaid.gov/Corinthian.

In 2013, Attorney General Harris filed a lawsuit against Corinthian Colleges, Inc. for false advertising and deceptive marketing targeting vulnerable, low-income students and misrepresenting job placement rates to potential and current students, investors and accrediting agencies.

Last year, after Corinthian’s failure to comply with federal regulations, the Department of Education heightened its oversight of the company.  In February 2015, the Department of Education and the Consumer Financial Protection Bureau (CFPB) secured more than $480 million in forgiveness for borrowers who took out Corinthian College’s high-cost private student loans.

In early April of this year, Attorney General Harris urged the U.S. Department of Education to relieve the student loan debt of thousands of students who attended Corinthian Colleges, Inc. campuses.  Later that month, the Department of Education took action against Corinthian Colleges, Inc, issuing a $30 million fine for misrepresentation of its job placement rates at Heald Colleges.  Other steps taken by the Department of Education included placing Corinthian on heightened cash management, requiring the company to sell or close all of its programs, and establishing an independent monitor to protect students, reduce tuition, and eliminate poor-performing programs. 

Former Corinthian students can learn more about debt relief by visiting http://oag.ca.gov/corinthian and www.studentaid.gov/Corinthian.

LOS ANGELES - Attorney General Kamala D. Harris today filed a friend-of-the-court brief in a high-profile affirmative action case before the U.S. Supreme Court, Fisher v. University of Texas, urging the Court to reaffirm its 2003 ruling in Grutter v. Bollinger and allow public universities to consider race as one factor among many in admissions decisions.

In the brief, Attorney General Harris argues that public colleges and universities should be able to consider race not only to increase the numbers of underrepresented students of color admitted, but to also ensure that students at these colleges and universities are reflective of a broad range of backgrounds and experiences.  As the Supreme Court ruled in 2003, there is a compelling interest in providing the educational benefits of a diverse student body at public colleges and universities that can justify considering an applicant’s race as part of a holistic admissions plan.  Additionally, the brief argues that diversity on college and university campuses produces benefits that extend into our society and democratic process.

“To prepare our future leaders to thrive in the global workforce, we must embrace the educational benefits of diversity,” said Attorney General Harris.  “I strongly urge the U.S. Supreme Court to reaffirm its decision that public colleges and universities may consider race as one factor in admissions decisions.”

The brief acknowledges the limitations imposed by Proposition 209 on California’s efforts to increase the diversity of its academic institutions.  Proposition 209, among other things, prohibits California from considering race during admissions decisions to its public colleges and universities.  As the brief emphasizes, however, California has a strong interest in retaining the flexibility to change course in the future, and each state should have the broadest discretion permissible to decide how to fashion suitable admission standards.

The U.S. Supreme Court first considered this challenge to the University of Texas admissions plan in 2012 and Attorney General Harris submitted a friend-of-the-court brief at that time.  The President of the University of California and the Chancellors of its campuses have also filed a brief arguing that the University of California is unable to achieve the academic benefits brought by diversity because of Proposition 209, as they did in 2012.

The case is set for oral argument on December 9, 2015.

A copy of the brief is attached to the electronic version of this release at oag.ca.gov/news.