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Court Orders Education Department to End Delay in Ruling on Loan Discharge

July 7, 2017

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A federal district court judge last week ordered the Department of Education to rule within 90 days on an application for loan relief by a former Corinthian Colleges student. The application has been pending for more than two years.

The plaintiff in the case, Sarah Dieffenbacher, took out $50,000 in federal student loans while attending Everest College (part of Corinthian) from 2007 to 2012. She submitted an application for loan cancelation alleging fraudulent conduct by the for-profit college in March 2015, a month before Corinthian announced it was closing down campuses operated by Everest and its other remaining brands.

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