The announcement Sunday that Corinthian Colleges COCO, -2.80%
would shut down its remaining campuses effective Monday capped the end of a months-long saga of winding down the for-profit chain’s operations amid investigations, lawsuits and fines. But for the 16,000 students like Gerber who were still attending Corinthian campuses at the time of Sunday’s announcement, the ordeal of figuring out what to do next
is just beginning. States attorneys general
, and the Consumer Financial Protection Bureau
have accused the company of urging students to take on high levels of debt to attend the school based on inflated job placement and graduation statistics. Now these students must determine whether it’s possible to make that debt worthwhile or attempt to get it forgiven.
“It’s not as easy for students as just all of the sudden, poof your loans are gone,” said Mark Huelsman
, a senior policy analyst at Demos
, a left-leaning think tank. “That’s probably unfortunate because at the end of the day you have tens of thousands of students who have really been affected by some proven malfeasance.”