Office of the Attorney General
Attorney General Conway Supports Senator Durbin Criticizing the Department of Education for Suggesting Corinthian Students Transfer Credits to For-profit Colleges Under Investigation

Press Release Date:  Thursday, April 30, 2015  
Contact Information:  Leland Hulbert
Deputy Communications Director
502-696-5659
 


Attorney General Jack Conway supports public comments made this week by U.S. Senator Dick Durbin (D-IL) criticizing the Department of Education for suggesting that former students of Corinthian Colleges transfer to other for-profit colleges, including colleges that are under investigation by multiple federal and state agencies.

Attorney General Conway is the leader of a national working group of 37 state Attorneys General who are reviewing the troubling practices of some for-profit colleges. Attorney General Conway issued subpoenas to seven schools operating in Kentucky about placement rates, recruiting and marketing practices. To date, lawsuits have been filed in four of those cases. Attorney General Conway has testified at Congressional hearings twice about the questionable practices of some for-profit colleges and the subsequent debt incurred by students.

"It is time that the Department of Education publicly recognizes the serious threat for-profit colleges pose to all students and work toward protecting students against future harm," said General Conway.

General Conway shares Senator Durbin's concern that this guidance from the Department of Education may steer vulnerable students harmed by Corinthian's collapse toward other for-profit schools at which they may fall victim to illegal lending, recruiting, or other practices. He agrees that this could lead students to incur substantial additional debt and be faced with yet another college closure.

In addition, General Conway urges the Department of Education to warn students that, if they transfer their Corinthian credits to another school, they will not be eligible for the option of a closed school discharge (forgiveness) of their student loans under federal regulations. General Conway highlights the importance that students of the failed Corinthian Colleges immediately understand their rights regarding the potential discharge of their loans. Further, he urges the Department of Education to provide meaningful debt relief to all students harmed by Corinthian's fraud.

For more information about student's rights under the closed school discharge (forgiveness) of their student loans please see: https://studentaid.ed.gov/repay-loans/forgiveness-cancellation/closed-school