December 20, 2017, Oakland, California:
This morning, borrowers represented by HERA and the Project on Predatory Student Lending at the Legal Services Center of Harvard Law School filed a nation-wide class action against the Department of Education for illegally and unfairly denying relief to tens of thousands of former Corinthian students who the Department already decided are entitled to have their loans discharged and their payments refunded. Not only were they lied to by Corinthian, they have now been lied to by the federal government.
The case was brought by three named plaintiffs:
- Martin Calvillo Manriquez was talked into WyoTech’s automotive technology program over community college. He didn’t really have an opportunity to even touch cars or car parts while he was enrolled. The school didn’t have tools or certified instructors. While he was in school, he worked at an oil change shop earning $8 an hour. He kept seeing classmates who had graduated from his program applying for the same low-paying, non-technical job he already had. Most of them didn’t even get jobs changing oil. Martin has never had a job related to auto repair. Even though the Department determined that Martin was misled and cheated, and even though he applied to have his loans discharged, the Department has taken two years of tax refunds and garnished his wages to pay back his loans.
- Rthwan Dobashi owes more than $20,000 for the same program. He has also never worked in the field. He is married, has two kids, and is expecting a third. In early 2016, he found out from the attorney general that he was eligible to have his debts from WyoTech cancelled, and he applied. He also told one of his friends from school, and his friend applied, too. His friend’s loans were discharged almost a year ago, while Rick still hasn’t heard anything from the Department.
- Jamal Cornelius’s attended the Information Technology-Emphasis in Network Security program at Heald College, and borrowed more than $25,000. His debt from Corinthian is the only line on his credit report. He has been waiting more than fourteen months for any response to his application for relief.
All three borrowers, and all class members, are entitled to relief pursuant to the Department’s Corinthian Job Placement Rate Rule, which it has established through countless public statements, previous discharges, and direct notice to tens of thousands of covered individuals. The Department may not now change this rule and apply changes retroactively. In other words, it is unlawful for the Department to go back on its word.
See the full complaint here.
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