Calvillo Manriquez v. Cardona

Information for former corinthian students

 

If you attended a Corinthian-owned school, you may be a member of the class in this lawsuit. To find out, click the link below.

 

If you are a class member, click below to sign up for updates about this case.

Please Note: This form does not create an attorney-client relationship. Additionally, legal advice will not be provided in response to this form. If you are looking for legal help with debt from a for-profit college, click here.

Overview

Who is involved in this case?

The Project on Predatory Student Lending and the Housing and Economic Rights activists (HERA) represent a class of tens of thousands of former students of Corinthian College, a predatory for-profit college chain, against the Department of Education. To see if you are a class member in this case click here.

 

What is this case about?

All class members in this case are entitled to debt relief based on the Department of Education’s Corinthian Job Placement Rate Rule, created in 2016 after the Department acknowledged Corinthian’s widespread wrongdoing. This rule was established through countless public statements, previous discharges, and direct notice to tens of thousands of borrowers. In 2017, the Department of Education unfairly and illegally denied this relief to former Corinthian students. The Project brought this case to court to secure the debt cancellation to which these students are entitled.

 

Where and when was this case filed?

This case was filed in December of 2017. In March 2018, the Project filed a motion for Preliminary Injunction to stop the Department’s illegal collection on class members’ loans while the case is ongoing. This injunction was granted in May of 2018.

The Latest

In October 2019, Education Secretary Betsy DeVos was held in civil contempt and sanctioned for her illegal collection of student loan debts – a direct violation of the 2018 injunction that ordered the Department to stop collecting on the loans of tens of thousands of Corinthian students.

Why this case?

Under the Department of Education’s watch, Corinthian took in billions in taxpayer money by using high-pressure tactics and racially-targeted advertising to build its business, all while producing outcomes for students so terrible that it had to lie about them. Corinthian filed bankruptcy and its debts disappeared, but the students it cheated remain thousands of dollars in debt for an education they never received.

We were overcharged and undereducated and then Everest left us high and dry. We are good people. We are hardworking, middle class people who don’t get involved in politics. I was poor my whole life and didn’t want my family to put up with the same thing. And here I am, 6 years later with nothing to show for my education and a lot of wasted time. As a single mom, you don’t have time to waste or money to spare. When they took my returns I was devastated. There is time lost, pain endured, and decisions made that can never be recovered. I know DeVos would say ‘this is not a lot of money,’ but having this money was what made my world spin, and not having it caused it all to come crashing down.”

- Andrea S., Decatur, MI

“I went to Everest because I had been a bartender my whole life, and it seemed like the best way to get new opportunities and a better job. When I learned about the fraud at Corinthian Colleges from the attorney general, I was relieved when I found my program would be eligible. I thought my loans were definitely going to be cancelled, and I wouldn’t have to worry about them anymore. My credit would finally be better and I would be able to get a fresh start. This was not the case. Instead the Department of Education stole my tax refund in 2019. I was planning to use the refund for rent, and losing it put me in a hole that I can’t get out of. I got evicted about one month after the government took my tax refund and have been homeless ever since.”

- Julie D., Princeton, Indiana

More Student Testimony

To read testimony submitted by defrauded former for-profit college students, click below.

Case Updates

What the Latest Student Debt Announcement from The Department of Education Means for Defrauded Borrowers | Blog

On March 18, 2021, the Department announced full debt cancellation for borrowers with partial relief decisions on their borrower defense applications. More than 90% of borrower defense applicants are not affected by the Education Department’s partial relief announcement because their applications were denied or because they are still waiting for a decision. Here’s what that means.

Statement on Education Department Rescinding Partial Relief Policy | Press Release

Today, the Department of Education rescinded its second partial relief policy. Its first was enjoined by a federal court in Calvillo Manriquez v. DeVos. This second policy has been challenged in Pratt v. DeVos. This policy was layered on top of the harmful 2019 borrower defense rules, and its repeal does not affect those rules.

Update | 2019: A Year of Student Victories And Holding Betsy DeVos Accountable

2019 was a landmark year for student borrowers cheated by for-profit colleges. The issue captured national attention as elected officials, advocates, students, media and the general public have tuned in to injustices taking place within the for-profit college industry, at the hand of the U.S. Department of Education. We continue to be inspired by students…

CASE DOCUMENTS

Order Regarding Sanctions

The court found the Defendants in civil contempt and ordered sanctions of $100,000.

Plaintiffs’ Motion for Partial Reconsideration

Plaintiffs' filed a Motion for Partial Reconsideration.

Plaintiffs' Response to Court's Order Regarding Contempt Sactions and Sovereign Immunity

Plaintiffs responded to the Court's order regarding contempt sanctions and sovereign immunity.

Coverage

A First Move on Borrower Defense | Inside Higher Ed

The Education Department announced yesterday that students who were cheated by for-profit institutions and previously granted partial relief on their direct federal loans will now be granted full relief. The department is rolling back a controversial formula — established under the previous secretary, Betsy DeVos — that gave some borrowers only partial debt forgiveness, even if it was found that they were defrauded or misled by their college.

Read More

Education Department Announces Plan it Claims Will Help Scammed Students Discharge School Debt | ABA Journal

A 2019 U.S. Department of Education policy on student debt discharge, which raised the burden of proof for applicants claiming that they were misled by their schools and put in place a plan that only granted partial relief for some, was rescinded Thursday.

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Is $10,000 In Student Loan Forgiveness Next, After Biden Administration Cancels $1 Billion? | Forbes

Yesterday, Education Secretary Miguel Cardona announced a policy shift that will result in $1 billion in student loan forgiveness. But what does that mean for the ongoing efforts by progressive lawmakers and consumer rights activists to convince President Biden to cancel student debt?

Read More