Calvillo Manriquez v. DeVos

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 is this case filed?

This case is filed in federal court in the Northern District of California.

 

When was this filed?

The Project filed this case 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.

Information for former corinthian students

If you attended a Corinthian-owned school, you may be a member of the class in this lawsuit.

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.

To get updates about big news in all of our cases, click here instead.

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.

The Latest:

The Department of Education filed an appeal to the Preliminary Injunction in July 2018 in an attempt to continue collecting on fraudulent debts. The Project argued the appeal in February 2019, and is currently waiting on the response from the court.

Case Updates

In the Fight for Student Loan Relief | Blog

For years, Corinthian Colleges, a network of over one hundred for-profit schools, defrauded students to rake in profits from taxpayer-funded federal student aid. Tens of thousands of students—many the first in their families to seek out higher education—were promised serious career training and job prospects, but left Corinthian’s campuses with little more than thousands of dollars in debt.

Update | Delay. Delay. Delay. The Department of Education Appeals Preliminary Injunction Order and Moves to Stay Litigation Pending Appeal: What it Means and What Happens Next?

On May 25, 2018, a federal court in San Francisco granted former Corinthian borrowers’ motion for a preliminary injunction in Calvillo Manriquez v. DeVos, ordering the Department of Education to stop using its “average rulings rule” immediately, and to stop collecting the loans of certain Corinthian borrowers.

Update | Injunction Against Department of Education: What it Means and What Happens Next

On May 25, 2018, a federal court in San Francisco granted our motion for a preliminary injunction, ordering the Department of Education to stop using its “average rulings rule” immediately, and to stop collecting the loans of certain Corinthian borrowers.

CASE DOCUMENTS

05/25/2018

Order Granting in Part and Denying in Part Plaintiff's Motion for Preliminary Injunction

Plaintiffs move the Court for a preliminary injunction returning to the status quo ante by requiring the Department of Education to process certain non-discharged federal student loan debt in accordance with the "Corinthian Job Placement Rate Rule."

06/19/2018

Amended Order Regarding Plaintiffs' Motion for Preliminary Injunction

The Court modifies the previous Order granting in part and denying in part Plaintiffs' motion for preliminary injunction.

10/15/2018

Order Certifying Plaintiffs’ Class

On October 15, 2018, the Court granted Plaintiffs’ motion for class certification, permitting Plaintiffs to pursue the case as a class action.

Coverage

Turning to Courts for Loan Forgiveness | Inside Higher Ed

Earlier this year, Sarah Dieffenbacher closed the book on a two-year legal fight with the U.S. Department of Education over her student loan debt. But the resolution was unsatisfying to Dieffenbacher. Instead of getting a ruling on the loan-forgiveness claim she filed for debt racked up at the former Everest College, the department discharged her loans through bankruptcy court.

Read More

Argosy University Closing Leaves Students Scrambling | Consumer Affairs

Another for-profit college has shut its doors, leaving many of its students with no degree and lots of debt. Argosy University, which operated brick-and-mortar campuses in Virginia, California, Illinois, Florida, Arizona, and other states had to turn out the lights after the U.S. Department of Education expelled it from the federal financial aid program.

Read More

Defrauded Students Win Class Certification in Lawsuit Against DeVos | Courthouse News Service

More than 100,000 students defrauded by Corinthian Colleges can team up to sue Education Secretary Betsy DeVos for rolling back Obama-era rules that provided full debt forgiveness, a federal judge ruled Monday.

Read More