U.S. Department of Education officials have determined that a slew of additional campuses owned by Corinthian Colleges misrepresented job placement rates, a finding that could help some 85,000 former students have their federal loans canceled.
The department announced Tuesday that hundreds of programs at the now-defunct for-profit chain's Everest and Wyotech campuses in California misled students about their job prospects after graduation. Officials also said they found misrepresentation at Everest University online programs based in Florida.
The announcement is essentially an expansion of the scope of the department's April findings against Corinthian-owned Heald College. At that time, the department slapped Heald with a $30 million fine, which sunk Corinthian's efforts to sell off those campuses and helped push the struggling company into bankruptcy several weeks later.
The new findings by the Education Department mean little for Corinthian as a company, which was dissolved in bankruptcy in August. But they could be significant for former Corinthian students who seeking to have their loans canceled.
The department earlier this year said it would "expedite" the debt relief applications for about 40,000 former Heald College students because officials already had enough evidence to process their claims. (As of August, though, only 1,500 of those former students had actually filed claims).
With Tuesday's findings, the department said an additional 85,000 students at the affected WyoTech and Everest campuses will be eligible to have their loans canceled.
The department described its findings as the product of a joint investigation with California Attorney General Kamala Harris, whose office sued Corinthian more than two years ago, alleging misrepresentation of job-placement rates among other wrongdoing.
Harris said in a statement that the "findings will expand the pool of Corinthian students eligible for streamlined student loan relief options." She thanked the department for "joining" her office "to keep Corinthian accountable for their actions and providing debt relief to students who were misled."
Education Secretary Arne Duncan said the "results of our joint investigation will allow us to get relief to more students, more efficiently."
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