Bankruptcy Judge Delays Debt Collections for Impacted Students

A U.S. Bankruptcy Judge has declined to rule on a request to halt loan repayments for thousands of students alleging fraud.
Judge Kevin Carey said the former students of the Corinthian Colleges must utilize a governmental loan relief program before he will grant a stay on debt collections.
The for-profit company, Corinthian Colleges Inc., filed for bankruptcy last month.
In April, the company abruptly closed 28 schools, leaving 16,000 students without classes.
They have since become the target of numerous lawsuits claiming they defrauded students as a predatory lender.
The Department of Education has devised a plan to provide relief to the debt-stricken students.



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