Ibrahim Gardner
Everest University, formerly known as Corinthian Colleges, operated for-profit schools that closed in April 2015. The U.S. Department of Education found that the company misrepresented job placement rates for its programs, leading to a federal investigation. As a result, Everest University students may be eligible for student loan forgiveness or discharge. This guide will outline the steps to file for student loan help, including the options available for both federal student loans and private student loans.
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What You'll Learn
Everest University student loan forgiveness
If you attended Everest University, you may be eligible for student loan forgiveness. Everest University, formerly known as Florida Metropolitan University, was operated by for-profit Corinthian Colleges until 2015 when it was shut down and has since been operated by the nonprofit Zenith Education Group. The for-profit industry's decline has opened programs allowing students to seek relief from their student loans obtained at dishonest for-profit institutions.
Everest University is among the schools that published misleading job placement rates for many of its programs since 2010, according to the U.S. Department of Education. As a result, students who enrolled in these programs during the covered time period can apply for faster student loan relief through a streamlined relief process. If approved, borrowers could have their Corinthian federal student loan debt forgiven and get refunds for any loan payments made.
Borrowers who took out private student loans, usually called "Genesis" loans, may be covered by a settlement agreement obtained by the Consumer Financial Protection Bureau (CFPB). This settlement provides that Genesis loan borrowers will receive a 40% reduction on principal balances and cannot be sued or threatened with legal action if they fail to repay their loans. All current negative information concerning Genesis loans will also be deleted from borrowers' credit histories.
To apply for a discharge based on school misconduct, you can visit StudentAid.gov/ev-wy-findings to determine if your program is included on the list identified by the DOE. Even if your program is not on the list, you may still qualify for a discharge if your school made misrepresentations or otherwise violated state law. In this case, you can apply for a loan discharge by providing a detailed account of your allegations of misconduct in the "Other Information" section of the application or by attaching a separate letter.
You can also call (800) 420-7039 to see if you qualify for student loan forgiveness or fill out a form to have one of their representatives determine the best programs for you based on your specific case.
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Student loan discharges
If you were enrolled at Everest University when it closed in April 2015, or if you withdrew after 20 June 2014, you may qualify for a Closed School Discharge. Students are not eligible if they transferred credits and completed a comparable program at another school.
Everest University was owned by Corinthian Colleges, Inc. The US Department of Education found that Corinthian Colleges engaged in widespread and pervasive fraud, including misrepresenting job placement rates to convince people to enrol and take out student loans. As a result, in June 2022, the Department of Education announced that it would cancel all federal student loans borrowed by students to attend Corinthian Colleges, including Everest University. This cancellation will apply to all borrowers with outstanding federal student loans, including Direct Loans, commercially-held FFEL loans, and Parent PLUS loans. The discharges will be automatic, and borrowers will also have any adverse credit history associated with Corinthian loans deleted.
If you took out private student loans, usually called "Genesis" loans, you may be covered by a settlement agreement obtained by the Consumer Financial Protection Bureau (CFPB). This settlement provided that Genesis loan borrowers will receive a 40% reduction on principal balances and will not be sued or threatened with legal action if they fail to repay their loans. All current negative information concerning Genesis loans will be deleted from borrowers' credit histories.
If you do not qualify for a closed school discharge, you may qualify for loan forgiveness based on a borrower defence to repayment claim if you can prove that the school defrauded you. This is a federal program called Borrower Defence to Repayment (BDTR) that could help you get the federal student loans associated with your school discharged.
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Closed School Discharge
If you were enrolled at Everest Institute Rochester or another Everest school when it closed in April 2015, or if you withdrew after June 20, 2014, you may qualify for a Closed School Discharge. Students who graduated from the school or transferred their credits and finished their degree elsewhere may not be eligible for this relief.
To obtain a Closed School Discharge, submit the Closed School Discharge Application to your loan servicer. To find your loan servicer, log in to "My Federal Student Aid" or call 1-800-4-FED-AID.
Many Everest borrowers also took out private student loans, usually called "Genesis" loans. If you received a Genesis loan, you may be covered by a settlement agreement obtained by the Consumer Financial Protection Bureau (CFPB). This settlement provided that Genesis loan borrowers will receive a 40% reduction on principal balances and that borrowers cannot be sued or threatened with legal action if they fail to repay their Genesis loans. All current negative information concerning Genesis loans will be deleted from borrowers' credit histories. You should have received a letter in March 2015 if your loan was included in the settlement. If you are unsure, contact the CFPB or ask your loan servicer.
If you are an Everest student with Direct Loans (or both Direct and FFEL Loans) and you apply for a discharge based on school misconduct, or if you plan to apply in the next year, you may request that your servicer or debt collector grant a forbearance to stop all debt collection, including wage garnishments, for a 12-month period. During this period, you will not be required to make payments. To request a forbearance, call the DOE at 855-279-6207. Your servicer will notify you when your loan has been placed into forbearance. Until you receive that notice, continue to make payments.
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Loan forgiveness for Genesis loans
If you took out a private student loan, usually called a "Genesis loan", while attending Everest University, you may be covered by a settlement agreement obtained by the Consumer Financial Protection Bureau (CFPB). This settlement provides that Genesis loan borrowers will receive a 40% reduction on principal balances. This means that eligible borrowers will immediately see a 40% drop in the amount they owe.
Genesis loan borrowers do not need to apply for this relief, as it is automatic. However, it is important to note that this deal only affects private Genesis loans and does not extend to federal student loans taken out to attend Corinthian Colleges, the company that operated Everest Institute and other Everest schools. If you are unsure whether your loan was included in the settlement, you can contact the CFPB or ask your loan servicer – the entity that sends you monthly statements about your private loan. You should have received a letter in March 2015 if your loan was included in the settlement.
If you attended a for-profit college and believe you were misled to enroll, you may be eligible for for-profit student loan forgiveness options like Borrower Defense to Repayment. Over the last several years, over $1 billion in student loan debt has been forgiven for students who attended for-profit colleges or other schools that potentially misled students. To determine whether you qualify for loan forgiveness, you can refer to the list of colleges that qualify for student loan forgiveness under borrower defense to repayment, the latest Sweet v. Cardona settlement, or other loan cancellation agreements with the Department of Education.
If you believe you qualify for loan forgiveness under Borrower Defense to Repayment, you can submit an application at studentaid.gov/borrower-defense/. It is important to note that there are many scams that use school names to trick individuals into paying for help with student loan forgiveness claims. You do not need to pay for this service, as you can complete the process for free via StudentAid.gov, a legitimate government website.
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Borrower Defense to Repayment (BDTR)
If you feel that you were scammed by your college, trade school, or training program, you should consider filing for a federal program called Borrower Defense to Repayment (BDTR). This program could help you get the federal student loans associated with your scam school discharged (and you may even get a refund).
The BDTR program was established to allow student borrowers to assert a defense against repayment of a Federal Direct Loan based on an act or omission of the school that gives rise to a state law claim that would support a challenge to repayment. The program first became effective in 1995, but the focus at that time was not loan discharge. From 1995 to 2015, there were between five and 60 BDTR requests in total.
In 2016, the Department of Education (ED) finalized new regulations pertaining to the Federal Direct Loan Program, establishing a new standard and process for the use of BDTR. These rules were finalized in the aftermath of the Corinthian Colleges and ITT Technical Institutes closures, which cost federal taxpayers nearly $250 million in debt forgiveness in just four months. The new regulations significantly broadened the standard to allow a borrower to assert BDTR based on a substantial misrepresentation, a breach of contract by an IHE, or a contested judgment against an IHE.
The new BDTR also brings back the prohibition on pre-dispute arbitration agreements and class action waivers as they apply to borrower defense claims. Institutions are required to disclose publicly and notify the secretary of education about judicial and arbitration filings and awards pertaining to a BDTR claim.
If you need assistance preparing and submitting your defense to repayment claim, you can reach out to a network of independent non-profit organizations for help.
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Frequently asked questions
Call (800) 420-7039 to see if you qualify for student loan forgiveness for Everest University.
The Office of the New York State Attorney General has deemed that borrowers who enrolled in certain programs identified by the U.S. Department of Education (“DOE”) in the DOE’s investigation of Corinthian Colleges, Inc. (the company that operated Everest University) are eligible to apply for federal student loan discharges. To obtain a loan discharge, eligible borrowers must submit an application to the DOE. You can complete and submit the form online, print and mail a copy of the form, or scan the form and email it to [email protected].
If you want assistance preparing and submitting your defense to repayment claim, you can email your name, phone number, email address, mailing address, the school/campus you attended, which program you were enrolled in, and any additional details about your situation. You can also call Studentaid.gov to check the status of your refund.
