Questions About Corinthian Colleges’ Loss of Eligibility for the Federal Student Aid Programs
Questions About Eligibility for Federal Student Loan Discharge
Questions About Fraud or Other Violations of State Law
Questions About Forbearance and Stopped Collections
Questions About Schools That Zenith Has Acquired
Questions About Schools That Zenith Plans to Teach Out
1. My school has lost eligibility to receive federal student aid funds from the U.S. Department of Education (ED). What is ED doing to assist students like me?
ED has provided information regarding the options students currently have, including closed school loan discharges.
ED continues to work with Corinthian to process student records from the affected schools as soon as possible so that transfer schools can access students’ remaining federal student aid eligibility.
Students interested in transferring their credits to another school should contact that institution to confirm that they will accept Corinthian credits and to determine next steps.
2. Which campuses are impacted by the closure of Corinthian Colleges?
Corinthian Colleges announced their closure on Monday, April 27, 2015. None of the 30 campuses are operating or offering instruction.
3. Will I be able to continue to receive financial aid?
Students who transfer to another school may continue to receive financial aid under certain conditions. Check with your new school for additional information.
4. Will I be able to finish the current term or semester?
Corinthian Colleges notified ED of its closure effective Monday, April 27, 2015. Students who transfer to a new school may be able to finish the current term or semester. If you do transfer into a comparable program offered by another school, that school will evaluate your Corinthian course work and will decide whether to give you credit for the work already completed, and what courses you need to take to complete your program of study.
5. Will I be able to complete my program?
Corinthian Colleges notified ED of its closure effective Monday, April 27, 2015. Students who transfer to a new school may be able to complete their program. If you do transfer into a comparable program offered by another school, that school will evaluate your Corinthian course work and will decide whether to give you credit for the work already completed, and what courses you need to take to complete your program of study.
6. Where can I get information about the status of my school or the location of my school records?
View the list of accrediting agencies and state licensing agencies for your school. Additional information on the location of student records can be found on the Corinthian Colleges’ website.
7. Where can I find information about the federal student aid I’ve received and how much more I might be eligible to receive?
For information on your federal student aid history and your remaining eligibility for certain federal student aid programs, please visit My Federal Student Aid.
8. Where can I learn more about applying for a State Tuition Recovery Fund?
Each state is different. View the information for your state.
Arizona: Arizona State Board for Private Postsecondary Education
California: California Bureau of Private Postsecondary Education
Hawaii: Hawaii Post-secondary Education Authorization Program
New York: Bureau of Proprietary School Supervision
Oregon: Oregon Department of Education
9. Will I be eligible for a closed school loan discharge?
You may be eligible for a 100% discharge of Direct Loans, Federal Family Education Loan (FFEL) Program loans, or Federal Perkins Loans you received to attend any school under either of these circumstances:
- Your school closes while you're enrolled, and you do not complete your program, either at the closed school or another school. If you were on an approved leave of absence when the school ceased operations, you are considered to have been enrolled at the school when it closed.
- You stopped attending your school within 120 days* before it closed.
You are not eligible for discharge of your loans if your school closes and any of the following is true:
- You have completed all the course work for the program, even if you have not received a diploma or certificate.
- You stopped attending more than 120 days* before the school closed.
- You enroll in and you complete a comparable educational program at another school and receive credits for the classes you took at the closed school. However, if you enroll in this comparable program and complete it, but the new school does not give you credit for any course work completed at the closed school, you would be eligible for a closed school discharge.
You also may be eligible for a closed school loan discharge in special circumstances, such as if you received a degree or certificate but didn’t complete your instruction or transferred but pursued a different program of study. Get information about how these special circumstances may impact your eligibility for a closed school loan discharge.
As stated above, if you transfer and apply your credits to a similar program at another institution, you cannot request closed-school debt relief. However, if you believe you have a claim, such as fraud, against your school under state law, you may still pursue debt relief based on borrower defense to repayment, even if you transfer your credits to another school.
*Note: A closed school loan discharge normally applies only to students who withdrew (without completing their program) within 120 days of the school’s closing date, or were attending when the school closed. But for Corinthian students, the Secretary of Education has extended the time frame to include any Corinthian student who withdrew from one of its closed schools on or after June 20, 2014.
10. Do I have the option to refuse a teach-out and get a closed school discharge?
- If your school ceases providing instruction to complete your program and offers you the option to complete your education at another school, you may refuse the option and still qualify for a federal loan discharge.
- If you refuse the teach-out option, but you later enroll at another school in substantially the same program in which you had been enrolled, the school gives you credit for work completed at your current school, and you complete the program at that school, you may not qualify for closed school discharge.
11. What is the deadline for applying for a closed school discharge?
There is no deadline for applying for a closed school discharge.
12. How do I apply for a closed school discharge?
- Complete and return the Closed School Loan Discharge Application sent to you by your loan servicer. You may also use this Closed School Loan Discharge Application to return it to your loan servicer.
- Contact your loan servicer about the application process for getting your loan discharged.
- You may also want to review our overview of the discharge process.
All completed Closed School Loan Discharge Applications must be sent to your loan servicer.
13. How do I find out which loan servicer is servicing my account?
Log in to My Federal Student Aid or call 1-800-4-FED-AID.
14. Am I eligible to have my private student loans forgiven?
Only federal loans are eligible for the closed school discharge described here. For information regarding any options that may be available with respect to the private loans you received to attend Corinthian, contact your private loan lender.
15. I believe I may have been a victim of fraud by my school. What are my options?
Under a borrower defense to repayment, you may be eligible for loan forgiveness (a discharge) of the federal Direct Loans you took out to attend a school if that school committed fraud by doing something or failing to do something, or otherwise violated applicable state law related to your loans or the educational services you paid for.
16. How do I submit a claim for a borrower defense to repayment?
ED is currently developing an official process for borrowers to submit claims which will be announced soon. You may submit a claim before the new process is available by sending materials via e-mail to FSAOperations@ed.gov or by mail to the following address:
U.S. Department of Education
P.O. Box 429060
San Francisco, CA 94142
17. What materials do I send to submit a claim before the process is announced?
In your borrower defense to repayment submission materials, you should include the following, at a minimum:
- A statement that the borrower wishes to assert a borrower defense to repayment based on state law
- First, middle, and last name
- Date of birth
- The last four digits of the borrower’s Social Security number
- Home address
- Telephone number
- E-mail address
- Name and location of the school
- The program of study
- Degree, certificate, or other credential attained or sought
- Dates of enrollment
- Documentation to confirm the borrower’s school, program of study, and dates of enrollment; suggested items include transcripts and registration documents indicating the borrower’s specific program of study and dates of enrollment
- Any details about the conduct of the school that the borrower believes violated state law, including, but not limited to, the following:
- The state and applicable law or cause of action (if available)
- Specific acts (including failures to act) of alleged misconduct by the school
- How the alleged misconduct affected the borrower’s decision to attend the school and take out a loan to pay to attend the school
- The injury suffered by the borrower as a result of the school’s alleged misconduct
- Any other supporting information that would help the Department of Education review the borrower’s claim
18. What does borrower defense to repayment cover?
Through borrower defense to repayment, you may be able to have your entire outstanding federal Direct Loan forgiven, and be reimbursed for amounts you have already paid.
19. Does it matter if my school is closed or still open and operating?
This can apply to you regardless of whether your school is open or closed.
20. What happens to my loans while ED is reviewing my claim for borrower defense to repayment?
While your claim is evaluated, your loans will be placed in forbearance, and collections will cease on any of your loans that are in default. Interest will continue to accrue while your claim is evaluated.
21. I attended a location of Heald College. What does this mean for me?
The U.S. Department of Education (ED) has found that between 2010 and 2014, Heald College misrepresented job placement rates for many of its programs of study. ED’s Heald College findings qualify students enrolled in the covered programs during the covered time periods to apply for a discharge of their federal Direct Loans through an expedited process using a simple attestation form.
If you were enrolled in one of the Heald College programs listed here on or after the date listed and want to apply for a discharge based on defense to repayment, you must do the following:
- Complete this fillable attestation form, print it, and sign it.
E-mail it to FSAOperations@ed.gov with required attachments or by regular mail to
U.S. Department of Education
P.O. Box 429060
San Francisco, CA 94142
ED will contact you as it processes your claim for loan forgiveness based on borrower defense.
Note: If you wish to stop paying your loan back while your application is considered, or to stop collections on a defaulted loan, check “Yes” in the requisite box under “Section IV: Direct Loan Forbearance” on the attestation form. You do not need to complete a separate process.
22. How do I request forbearance or stopped collections for my federal student loan?
Corinthian students intending to submit a borrower defense claim (including those that wish to wait for further information about the process) can have their federal loans placed into forbearance or stopped collections. To do that, you can request here or call 1-855-279-6207 with the information below in order to have your loans placed in forbearance or to stop collections until your claim is reviewed and processed:
- Your full name
- Your address
- Your phone number
- The last four digits of your Social Security number
Your federal loans will be placed in forbearance, or collections will stop for up to 12 months. Note that private loans cannot be placed into forbearance or stopped collections.
Note: At this time, forbearance requests submitted on the basis of a future submission of a borrower defense claim will be granted only for Corinthian College students.
23. Will interest still accrue while my federal loans are in forbearance or when collections stop?
Interest will continue to accrue (accumulate) on your federal loans, including subsidized loans, during the forbearance or stopped collections period.
24. How long is the period for forbearance or stopped collections?
If you do not submit your defense to repayment claim within 12 months of making this request, your loans will be taken out of forbearance or stopped collections, and normal payment and collection activity will resume.
25. I have multiple federal student loans and want to apply for forbearance or stopped collections. How does this impact my various federal student loans?
The forbearance or stopped collections will affect all of a borrower's federal loans, including loans that are not eligible for a borrower defense to repayment loan discharge, such as loans taken out to attend a different institution than the one related to your claim. Note that interest will continue to accrue on all of these federal loans, including subsidized loans, during the forbearance or stopped collections period.
If you want the forbearance or stopped collections to apply only to those loans related to your borrower defense claim, or if you do not want your loans to continue in forbearance or stopped collections, you must notify your loan servicer after you hear from them confirming the forbearance or stopped collections. At any time during the forbearance or stopped collections period, you may voluntarily make payments on your loans, including payments for accrued interest, or end the forbearance or stopped collections by contacting your servicer.
If your borrower defense claim is successful, your federal loans related to your claim will be discharged. Also at that time, the forbearance or stopped collections period for your other federal loans will end. You will be responsible for repaying the other loans, including interest that accrued during the forbearance or stopped collections period, under the terms of your promissory note.
26. What happens if ED denies my borrower defense claim?
You will not receive a discharge of any of your loans and the forbearance or stopped collections period will end for all of your loans. You will be responsible for repaying your loans, including interest that accrued during the forbearance or stopped collections period, under the terms of your promissory note.
27. When did the sale take place?
Zenith finalized its acquisition of more than 50 Everest and WyoTech campuses from Corinthian College on Feb. 2, 2015. View the list of campuses acquired by Zenith.
28. What are my options for continuing my studies if my school was sold?
This change in ownership has no immediate impact on your ability to continue your studies at your school or to receive federal student aid funds from the U.S. Department of Education. In addition, you may be able to transfer to another eligible school that offers a comparable educational program. If you transfer to another school, that school decides whether to give you credit for work you completed at your original school.
29. Will I be able to finish the current semester/term?
This change in ownership has no immediate impact on your ability to complete the current semester or term.
30. Will I be able to complete my program?
Yes. If you wish to continue your program at your school, you will be able to complete your program of study at the appropriate Zenith campus. You may also be provided other options by Zenith staff for transferring to a different program. Further, if you do transfer into a comparable program offered by another school, that school will evaluate your Zenith/Corinthian course work and will decide whether to give you credit for the work already completed, and what courses you need to take to complete your program of study.
31. What happens to my student loan or Federal Pell Grant under the acquisition?
Your student loan and Pell Grant eligibility will remain the same while the Zenith campus applies for eligibility to participate in the federal student aid programs under the new ownership.
32. Will I have to reapply for admission to Zenith?
No, former Corinthian students will not be required to reapply for admission to a Zenith school that has been acquired through the sale.
33. Will the change in ownership affect my eligibility for federal student aid?
As long as the U.S. Department of Education continues to approve the Zenith school for federal student aid purposes, you will be able to continue to receive federal aid for which you are eligible.
34. If the U.S. Department of Education does not approve the school for federal aid purposes after the change in ownership, what are my options?
- If the school closes, you may qualify for discharge of federal loans already received for attendance at that school.
- If the school does not close, you may continue your enrollment in the program, but you will not be able to receive new federal student assistance, and will not qualify for discharge of federal loans already received for attendance at that school.
- You may transfer to a school that is eligible to participate in the federal student aid programs, and obtain federal student aid funds to complete your program of study there.
35. Will I have to reapply for financial aid?
No, you will not be required to complete a new Free Application for Federal Student Aid (FAFSA®) for the current term or award year. However, you may be asked to update your current FAFSA.
36. My school informed me that it is planning a “teach-out” for my program. What does this mean?
A teach-out means the school will complete instruction to all currently enrolled students, but not enroll any new students because it is planning on ceasing operations.
37. What are my options for continuing my studies if my school is being taught out?
Zenith has indicated its intention to conduct teach-out of the programs for 12 acquired schools. A teach-out provides the opportunity for you to finish your program at your school. However, you should contact the institution for additional information if you are enrolled at one of the schools Zenith plans to teach out.
38. What happens to my student loan or Federal Pell Grant if my school is scheduled to be taught out?
If you remain enrolled in your program at Zenith and the U.S. Department of Education continues to approve the Zenith teach-out school for federal student aid purposes, there is no impact on your student loans and Pell Grant funds for which you qualify.
39. Will I be required to apply for admission at the school providing the teach-out?
No, you will not be required to apply for admission.
40. Will I be required to reapply for financial aid at a school Zenith is teaching out?
No, you will not be required to complete a new Free Application for Federal Student Aid (FAFSA) for the current term or award year.