The attorneys general from nine key states are calling upon the federal government to forgive federal loans issued to thousands of students at Corinthian Colleges, which imploded last year after years of criticism of sharp practices in enrolling adults in expensive programs with few job prospects after graduation.In a letter to Secretary of Education Arne Duncan
, these top Democratic prosecutors last week urged the U.S. Department of Education "to immediately relieve borrowers of the obligation to repay federal student loans that were incurred as a result of violations of state law by Corinthian Colleges, Inc."
The attorneys general were from Massachusetts, California, Connecticut, Illinois, Kentucky, New Mexico, New York, Oregon and Washington.
The call for debt relief comes at a time when a group of 100 former students of Corinthian are refusing to pay
their loans used to pay for programs that they say were worthless.
In 2014, Corinthian announced that it would be closing and selling off its schools such as Everest and Wyotech after U.S. Department of Education officials froze access to federal financial aid for three weeks at a time when the company was facing multiple challenges, including a lawsuit by the Consumer Financial Protection Bureau.