Department of Commerce and Consumer Affairs

DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS
DAVID Y. IGE
GOVERNOR

CATHERINE P. AWAKUNI COLÓN
DIRECTOR

FOR IMMEDIATE RELEASE
April 25, 2017

Former Corinthian College Students Eligible for Federal Student Loan Cancellation and Refunds

HONOLULU – The Department of Commerce and Consumer Affairs (DCCA) Hawaii Post-secondary Education Authorization Program (HPEAP), joined with at least 42 other states and the District of Columbia, is notifying nearly 2,500 Hawaii residents who attended schools operated by Corinthian Colleges, Inc. – including Heald College in Honolulu – that they are eligible for cancellation of their federal student loans used to attend those schools.  If a student’s federal loan is cancelled, the student will make no more payments on the loan, and any payments already made will be refunded.

Approximately 2,474 Hawaii residents are eligible for federal student loan cancellation and will receive a letter explaining the relief available and enclosing a short application that must be filed with the U.S. Department of Education.

After intense scrutiny by various government entities, for-profit Corinthian Colleges abruptly ceased operations in 2015, transferring some of its campuses to a non-profit called Zenith Education Group.  The U.S. Department of Education then found that while it was operating, Corinthian Colleges made widespread misrepresentations between 2010 and 2014 about post-graduation employment rates at its Heald College campus, and elsewhere across the nation. Lists of the affected campuses, programs, and dates of enrollment are available at https://www.StudentAid.gov/heald-findings and at https://www.StudentAid.gov/ev-wy-findings.  Students who first enrolled in the identified campuses and programs during the specified time periods are eligible for streamlined discharge of their federal student loans.

“Former students are still unnecessarily paying for loans that should be forgiven,” said Bobbi Lum-Mew, HPEAP Program Administrator.  “This is the latest effort by state and federal officials to reach these Hawaii residents and put money back in their pockets.”

HPEAP’s outreach will be sent to students who fall within the U.S. Department of Education’s findings of fraud discussed above, and who are eligible for a special “streamlined” process to discharge their federal student loans.  However, any student who attended Corinthian Colleges and believes that the school lied about job prospects, the transferability of credits, or other issues may apply to have their federal student loans canceled using the Department of Education’s universal discharge application at https://borrowerdischarge.ed.gov.  More information is available at https://studentaid.ed.gov/borrower-defense.

Borrowers should beware of student loan scams.  You can apply for loan forgiveness, or get information on loan forgiveness, for FREE through the U.S. Department of Education.  The U.S. Department of Education never charges application or maintenance fees, so if you’re asked to pay, walk away.

It may take time for the U.S. Dept. of Education to process applications, so anyone who applies for loan discharge should continue making payments on the affected loans until informed by the U.S. Dept. of Education or his loan servicer that his federal loans are in forbearance while his application is pending or that his loans have been cancelled.

If you have questions, more information about the Office’s outreach to former Corinthian Colleges students can be found at https://www.HealdOutreach.com.  Students can also call the U.S. Department of Education hotline at 1-855-279-6207 or e-mail questions about discharge of their federal student loans to [email protected].

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About Hawaii Post-secondary Education Authorization Program

The Hawaii Post-Secondary Education Authorization Program (HPEAP) operates within the Department of Commerce and Consumer Affairs pursuant to Hawaii Revised Statutes Chapter 305J. HPEAP authorizes accredited, degree-granting institutions physically present in Hawaii. HPEAP has been fulfilling Heald College Honolulu transcript requests for former students since the institution closed.

 

Media Contact:
William Nhieu
Communications Officer
Department of Commerce and Consumer Affairs
Phone:  (808) 586-7582
Email:  [email protected]