Hi Everyone! From 2010-2013 I attended and graduated from Heald College (Corithian) who shortly after went bankrupt and closed down. I was stuck with a $30K loan debt with a degree that no job employment would even consider. I was not placed in a internship or helped/guided to how to begin. Thus, I accepted losing 3 years of my life on a useless degree. However, I wasn't going to let the loan be a burden. I filed a Loan Forgiveness Application in 2015. Submitted all of my documents, and answered their questionaires only to have never heard back, so I just forgot about it completely but still remain to pay for my student loans monthly. A week ago, I receive the following letter below from the U.S. Department of Education. Not sure what to think of it, I researched it and it's a legitimate lawsuit. However, it says that my loan would be in forberrance, but there has been no changes to my loan. Has anyone receive the same, can anyone add some input?
A federal district court has preliminarily stopped the U.S. Department of Education (ED or we) from collecting on William D. Ford Federal Direct Loan (Direct Loan) Program loan(s) held by certain Corinthian Colleges, Inc. (Corinthian) borrowers. You are receiving this email because a review of our records indicates that you are affected by the court order, as a borrower with a pending borrower defense to loan repayment (also known as “borrower defense” or “defense to repayment”) application.
The preliminary injunction order was issued in Manriquez v. DeVos (No. 3:17-cv-7210-SK), a case that is currently stayed, pending appeal, in the U.S. District Court for the Northern District of California. The case involves a challenge to a methodology ED used to calculate the amount of loan discharge for certain Corinthian borrowers. The order applies to persons who submitted attestation and general application forms for borrower defense to loan repayment discharges on the basis of ED’s findings that certain Corinthian-owned Heald College, Everest Institute, and WyoTech campuses misrepresented job placement rates for certain programs.
Pursuant to the preliminary injunction order, borrower defense applicants with pending applications on this basis have been placed into forbearance and/ or in stopped collections status. While your borrower defense application remains pending, your federal loans will remain in that status pending further direction from the court. If you are in an income driven repayment plan with a calculated payment that is zero ($0) you will not be placed into forbearance, as no payment is due.
For more information about the lawsuit, to view copies of the May 25, 2018 preliminary injunction order and the subsequent clarifying court orders, or to learn more about how forbearance and stopped collections status may apply to your situation, please check out ED’s website at StudentAid.gov/corinthian. If you have any questions about the status of your loans in light of these orders, please visit our website or call us at our Borrower Defense Customer Support at 855-279-6207.
Sincerely,
Borrower Defense Unit
Federal Student Aid
U.S. Department of Education
