BILL ANALYSIS Ó
SENATE COMMITTEE ON EDUCATION
Senator Carol Liu, Chair
2015 - 2016 Regular
Bill No: AB 573
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|Author: |Medina |
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|Version: |July 9, 2015 Hearing |
| |Date: July 15, 2015 |
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|Urgency: |Yes |Fiscal: |Yes |
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|Consultant:|Kathleen Chavira, Olgalilia Ramirez |
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Subject: Higher education: campus closures: Corinthian
Colleges
SUMMARY
This bill provides for various forms of assistance to students
impacted by the recent closure of the Heald, Everest and Wyotech
campuses owned by Corinthian Colleges Inc. (CCI) and operated in
California.
BACKGROUND
Existing law:
BPPE Oversight
1)Establishes the California Private Postsecondary Education Act
(Act) of 2009 until January 1, 2017, which provides for the
approval, regulation, and enforcement of private postsecondary
educational institutions by the Bureau for Private
Postsecondary Education (BPPE) within the Department of
Consumer Affairs (DCA). (Education Code § 94800-94950)
2)Provides for specified exemptions from BPPE oversight. These
include an exemption for an institution that is accredited by
the Accrediting Commission for Senior Colleges and
Universities (ACSC), Western Association of Schools and
Colleges (WASC), or the Accrediting Commission for Community
and Junior Colleges (ACCJC). An institution accredited by a
regional accrediting agency, recognized by the United States
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Department of Education (USDE) is also exempt from oversight
until January 1, 2016, but is required to comply with
requirements related to the Student Tuition Recovery Fund
(STRF). (EC § 94874, § 94874.1)
3)Authorizes an institution exempt from the Act to apply for
Bureau approval and specifies that the institution shall be
subject to all of the provisions of the Act and Bureau
oversight. (EC § 94874.8)
4)Establishes various fair business practices and prohibits an
institution from engaging in certain activities such as false
advertising, promising or guaranteeing employment. (EC §
94897)
5)Establishes the Student Tuition Recovery Fund (STRF),
administered by the Bureau, to relieve or mitigate economic
loss suffered by students enrolled at a non-exempt private
postsecondary education institution due to the institutions'
closure, the institutions' failure to pay refunds or reimburse
loan proceeds, or the institutions' failure to pay students'
restitution award for a violation of the Private Postsecondary
Education Act. (EC § 94923 - 94925)
6)Requires institutions to annually report to the Bureau on
completion, placement, licensure and salary of
students/graduates and establishes various definitions for
this purpose and further requires that the information used to
substantiate the reported rates and information be documented
and maintained by the institution for five years from the date
of the publication of the rates and be retained by the
institution in an electronic format. (EC § 94928 - 94929.9)
7)Requires fees pursuant to the Act to be deposited in the
Private Postsecondary Education Administration Fund (PPE
Fund), authorizes the Bureau to adjust fees if it determines
that the fees established in the Act are inconsistent with the
intent, and prohibits the PPE Fund from having a reserve
balance greater than the amount necessary to fund six months
of authorized operating expenses of the Bureau in any fiscal
year. (EC § 94930)
School Closures
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8)Requires an institution to notify the Bureau in writing of its
intention to close at least 30 days prior to closing, and to
include in its notice a closure plan that includes a plan for
providing teach-outs of educational programs, or, if no
teach-out plan is contemplated, or a student does not wish to
participate in a teach-out, include arrangements for making
refunds within 45 days from the date of closure, or as
applicable, arrange for refunds and the return of federal
student financial aid program funds. Existing law also
requires, as applicable, an institution to provide students
information concerning these financial aid programs and
institutional closures, and requires the closure plan to
include a plan for the disposition of student records. (EC §
94926)
9)Requires all private postsecondary institutions, including
those exempt from the Act, prior to closing to provide the
Bureau with pertinent student records, including transcripts,
and if accredited to provide a plan, approved by the
institution's accrediting agency, for the retention of records
and transcripts that provides information as to how a student
may obtain a transcript or any other information about the
student's coursework and degrees completed. (EC § 94927.5)
Financial Aid
1)Requires an institution, in making consumer loans to students,
to comply with the Federal Truth in Lending Act. (EC § 94918)
2)Requires the Board of Governors (BOG) to charge each student a
$46 per unit per semester fee and requires a waiver of these
fees for students meeting specified income requirements, among
others. (EC § 76300)
3)Authorizes the Cal Grant program, administered by the
California Student Aid Commission (CSAC), to provide grants to
financially needy students to attend college. The program
consists of the Cal Grant A, Cal Grant B, and Cal Grant C
programs and eligibility is based upon financial need, grade
point average, California residency, and other eligibility
criteria, as specified. The program also establishes
requirements for institutional participation. These include
a three-year Cohort Default Rate (CDR) of less than 15.5
percent and a Graduation Rate (GR) of no less than 20 percent
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(this rate increases to 30 percent in 2016-17). (EC § 69430,
et seq.)
4)Establishes, under Title IV of the Federal Higher Education
Act of 1965, the federal student aid program, administered by
United States Department of Education (USDE) to provide
grants, loans and work-study funds from the federal government
to eligible students enrolled in eligible colleges or career
schools (20 U.S.C. § 1070, et seq.). Institutional
eligibility requirements for Title IV financial aid, include
that institutions be "authorized" by each state in which they
operate, and have an independent state-level student complaint
process.
(34 Code of Federal Regulations § 600.9)
ANALYSIS
This bill provides for various forms of assistance to students
impacted by the recent closure of the Heald, Everest and Wyotech
campuses owned by Corinthian Colleges, Inc. (CCI) and operated
in California: It:
1)Establishes assistance through the California Community
Colleges (CCC). Specifically it
a) Declares the Legislature's intent that the CCC utilize
available resources to provide matriculation services, as
specified, to students previously enrolled at Corinthian
Colleges, Inc. (CCI) institutions and harmed by the their
closure.
b) Appropriates $100,000 in Prop 98 General Fund monies to
the CCC Chancellor, to be allocated to a CCC district to
conduct a statewide media campaign to inform these students
of educational opportunities available at CCCs.
c) Makes a student who was enrolled at a CCI campus on
April 27, 2015, or withdrew within 120 days (or a greater
period as determined by the BPPE) prior to the CCI closure,
and did not complete their educational program, eligible
for a Board of Governor's (BOG) Fee Waiver until July 1,
2018.
2)Establishes assistance through the Cal Grant Program. It:
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a) Requires that a student who enrolled in and received a
Cal Grant award in 2013-14 or 2015-16 academic year at a
CCI institution and who was unable to complete their
educational program due to its closure have Cal Grant
eligibility restored for up to 2 award years.
b) Makes eligibility for Cal Grant restoral contingent upon
Bureau for Private Postsecondary Education confirmation of
the student's enrollment at a CCI campus, as specified.
c) Requires that an eligible student notify the California
Student Aid Commission (CSAC) by January 1, 2017 of the
intent to use the restored award and to enroll in a Cal
Grant eligible institution.
3)Establishes assistance through the state professional
licensing process. It:
a) Authorizes a state agency that provides professional
certification, registration or licensure to, on a case by
case basis, consider former Corinthian Colleges, Inc. (CCI)
students that received applicable education and training
for certification, registration or licensure for a period
of up to two years from the date of the CCI closure.
b) Requires that the consideration extended in (a) be at
the discretion of the state agency and in accordance with
its public protection mandate and applicable criteria it
has established for consumer safety.
4)Establishes the following assistance through the Student
Tuition Recovery Fund (STRF) program:
a) Expands eligibility for payments from the STRF to
include a student enrolled at a California campus of a CCI
institution or a California student enrolled in an online
program offered by an out-of-state CCI campus, who meets
all other eligibility requirements, and was enrolled on, or
withdrew within 120 days of (or a greater period as
determined by the Bureau for Private Postsecondary
Education), April 27, 2015, regardless if the institution
attended by the student was exempt from the Act.
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b) Requires that a CCI student eligible under the
conditions outlined in (a) be eligible for payments from
the STRF despite not having paid any STRF assessment.
c) Expands and makes changes the STRF program. It:
i) Clarifies that STRF is available to relieve or
mitigates economic loss suffered by a California resident
student enrolled through a distance education program
offered by an institution with a physical presence in the
state, (including its affiliates), but excepts from this
provision students that attend nonpublic, nonprofit
institutions incorporated in California and accredited by
an agency recognized by the United States Department of
Education (USDE) that is exempt from the Act.
ii) Requires that a student's eligibility for STRF not
be lessened nor the amount of the student's economic loss
reduced unless a student loan has been forgiven,
discharged or cancelled.
iii) Authorizes an institution to submit STRF assessments
on behalf of its students but prohibits an institution
from advertising or marketing this as a benefit the
institution provides for its students.
iv) Requires, for institutions approved to operate after
the bill's effective date, the Bureau to collect STRF
assessments for all enrolled students from an institution
upon issuance of the institution's approval to operate.
v) Requires, for institutions approved to operate prior
to the bill's effective date, the Bureau to collect
Student Tuition Recovery Fund (STRF) assessments from the
institution for its enrolled students for whom an
assessment has not been collected, including assessments
for students enrolled in distance education programs.
vi) Increases the maximum allowable fund balance in the
STRF from $25 million to $50 million, and makes other
conforming changes.
5)Establishes additional assistance under the requirements
regarding school closures. Specifically it:
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a) Requires that, until January 1, 2020, a single point of
contact (SPOC) be established to respond to the closure of
institutions that do not comply with state and federal law
and to ensure that students receive accurate and timely
information regarding the closure process and their rights
and responsibilities under federal and state law, and
requires the SPOC's duties to include, but not be limited
to:
i) Coordinating and working in consultation with
federal and state agencies to determine options and
resources available to students and identify criteria
which indicate additional steps are necessary for state
agencies to take to ensure the protection of the public
from school closures.
ii) Establishing and maintaining an Internet Web site
to:
(1) Provide information to students about options
available in the event of a school closure.
(2) Provide information necessary to help a
student make an informed decision about whether to
seek a loan discharge or to transfer credits.
(3) List the names of institutions that are on the
United States Department of Education's (USDE)
heightened cash monitoring list.
iii) Assisting students in obtaining documentation from a
closed institution, including enrollment agreements,
records, transcripts and loan information.
b) States that consideration shall be granted to
establishing the SPOC within the Attorney General's Office
(AG) based on specified Legislative findings regarding the
AG's related experience.
c) Prohibits these provisions from being construed to
authorize the AG to breach its responsibilities or provide
individual legal assistance or representation of students
impacted by school closure and requires that the
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responsibilities of the SPOC be separate and distinct from
the AG's other statutory responsibilities.
6)Establishes assistance for student loan related purposes for
students affected by a school closure. It:
a) Establishes until July 1, 2020, a grant program for
eligible local nonprofit community service organizations,
as specified, to provide specified services to assist
students upon the unlawful closure of an institution.
b) Specifies that an eligible local nonprofit community
service organization must be a 501(c)(3) tax-exempt
organization in good standing with the Internal Revenue
Service, in compliance with all applicable laws and
requirements, and demonstrate expertise in assisting
students with student loan matters, and include, but not
be limited to legal aid organizations, organizations
offering free services for counseling on student loan debt
problems, organizations assisting with the arrangement of
debt management and settlement plans in order to assist the
students, including veterans, for no less than one year
following the closure of the institution, with loan
discharge and other student loan-related requests and
tuition recovery related claims.
c) Requires that assistance include, but not be limited to,
outreach and education, screening requests for assistance,
referring students for additional legal assistance through
pro bono referral programs, and legal services.
d) Provides that the amount of grant funds shall be
calculated by multiplying the number of students affected
by the institution's closure by one hundred dollars ($100).
e) Requires the Bureau to notify the Attorney General (AG)
of any unlawful school closure within 15 days, as
specified, and requires the AG, within 90 days of the
receipt of the notification, to solicit grant applications
and select one or more recipient organizations from among
any applicants deemed qualified by the AG, and authorizes
the AG to enter into an agreement with another qualified
entity to perform these duties.
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f) Requires a nonprofit community service organization that
receives grant funds to use them exclusively for the
specified purposes, authorizes extension of priority to
low-income students if demand exceeds available grant
funds, and requires specified reporting on the number of
students served.
g) Requires the distribution of grant funds by the AG, or a
qualified entity designated by the AG, as specified, based
upon the number of students affected by the school closure.
7)Appropriates $1.3 million from the Private Postsecondary
Education Administration Fund to the Bureau for the purpose of
providing the financial grants to be provided to nonprofit
community service organizations and suspends the existing
prohibition on the fund reserve balance requirements until
July 1, 2016.
8)Declares the Legislature's intent that unencumbered
restitution funds awarded to the state from a lawsuit
involving Corinthian Colleges, Inc. (CCI) and its affiliate
institutions be used to repay any funds provided to students
under the bill's provisions.
STAFF COMMENTS
1)Need for the bill. According to the author, while current state
and federal laws provide some relief to some students affected
by the closure of Corinthian Colleges, Inc. (CCI) campuses,
this bill ensures all California students are protected. The
author notes that not only are existing relief programs
insufficient to support all California students harmed by the
CCI closures, evidence is surfacing that students are being
provided inaccurate and inconsistent information regarding
their rights and options. This bill will ensure that
California students harmed by the closure of private,
for-profit colleges have access to economic relief and
educational opportunity.
2)What relief is already available? Existing state and federal law
provide some relief to some students. Students enrolled at
the time of closure (or who withdrew within previous 120 days)
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who could not complete their programs may be eligible for
federal student loan discharge. However, students are
ineligible for loan discharge if they completed their
programs, benefitted from a "teach-out" agreement (whereby the
student can complete his or her program through another
school), or transferred credits to a similar program. Federal
law also permits the department to discharge loans of students
who were defrauded by their schools under "defense against
repayment," provisions, although this authority has rarely
been used. Student Tuition Recovery Fund (STRF) payments are
available to California Wyotech and Everest students who have
suffered economic losses. However, as a Western Association
of Schools and Colleges (WASC) accredited school, Heald
Colleges were exempt from Bureau for Private Postsecondary
Education (BPPE) oversight, and as such STRF payments are not
available to Heald students nor are they available to students
enrolled in out-of-state online programs.
3)What additional relief does this bill propose? In summary, this
bill would provide these additional sources of relief to
students who were enrolled or withdrew from enrollment within
120 days of the date of the Corinthian closures.
a) Makes these students eligible for a community college Board
of Governor's (BOG) fee waiver until July 1, 2018 and
provides $100,000 to support a statewide media campaign to
support outreach to these students through the existing "I
Can Afford College" financial aid awareness campaign.
b) Restores Cal Grant eligibility for students who notify
California Student Aid Commission (CSAC) that they will
enroll in a Cal Grant eligible institution before January
1, 2017.
c) Authorizes state agencies, at their discretion, to consider
providing these students eligibility for certification,
registration or licensure on a case by case basis for up to
two years.
d) Makes Heald students eligible for STRF payments.
e) Establishes, until January 1, 2020, a single point of
contact within the Attorney General's (AG) office to
coordinate the efforts of state and federal agencies to
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assist students with understanding school closures and
their options around student loan forgiveness.
f) Establishes, until July 1, 2020, a grant program for
eligible local nonprofit community service organizations to
provide debt related services to students.
g) Appropriates $1.3 million from fees paid by regulated
institutions for purposes of providing the financial grants
to the nonprofit community service organizations.
4)Corinthian Colleges, Incorporated (CCI) students. CCI
institutions offered a range of programs, including 8-12 month
certificate programs, with tuition and fees that from
$13,100-$21,338, 24-month associate's degree programs with
tuition and fees that ranged from $33,120 and $42,820, and
bachelor's degree programs at a cost of between $60,096 and
$75,384. According to a 2014 complaint filed by the Consumer
Financial Protection Bureau (CFPB), most students attending
CCI were low-income, or the first in their families to seek an
education beyond high school. In 2012, CCI reported that 85%
of its students had family incomes of less than $45,000 a
year. An estimated 57% of CCI students had household incomes
of $19,000 or less, and 35% of CCI students had a household
income of less than $10,000.
Most students attending CCI received federal financial aid.
According to CCIs filing with the Securities and Exchange
Commission, CCI received 84.8% of net revenue from federal
financial aid programs such as Pell Grants and federal loans.
5)Board of Governor (BOG) waivers. This bill requires that a
student affected by the CCI closures, as specified, is
automatically eligible for a BOG waiver on that basis. It
appears that the vast number of these students would already
be eligible for a BOG waiver on the basis that they meet
existing income standards or demonstrate financial need.
Financial aid policy in California has generally been focused
upon the provision of need-based financial assistance. This
bill would automatically waive fees for former CCI students
whether or not they meet income standards or demonstrate
financial need. If these students have been reimbursed from
the Student Tuition Recovery Fund (STRF), had Cal Grant
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eligibility restored, and have no demonstrated financial need,
is it reasonable to require waiver of their fees simply on the
basis that they attended a CCI?
Staff recommends the bill be amended on page 7, line 19 and
line 26 to insert "with demonstrated need, as determined by
the campus."
6)Cal Grant Restoration. This bill restores Cal Grant eligibility
for Corinthian students who were enrolled and received an
award during the specified time period, but were unable to
complete their education program due to the closure. For the
2014-15 academic year, all ten of Heald college's campuses
were eligible for the Cal Grant program. The remaining two
Corinthian institutions, Wyotech and Everest, have been
ineligible for Cal Grants since the 2011-12 academic year. As
such, only the students enrolled at Heald would be eligible to
receive a Cal Grant award under these provisions. According to
the California Student Aid Commission (CSAC) in the 2014-15
academic year, 7% of these students received a Cal Grant A,
34% received a Cal Grant B and 59% received a Cal Grant C.
Based on the criteria outlined in the bill, CSAC indicates
that approximately 2,000 students would qualify for one year
of restoration and roughly 150 for a second year. The CSAC
estimates this cost to be approximately $5 million for two
years of restoration.
Since the criteria for Cal Grant restoration would only be
applicable to Heald students, staff recommends the bill be
amended to make this clarification.
7)California National Guard Education Assistance Award Program
(CNGEAAP). Heald students may also have participated in the
CNGEAAP, a program intended for active members of the National
Guard, the State Military Reserve, or the Naval Militia. This
competitive incentive program is jointly administered by the
California Student Aid Commission (CSAC) and the Military
Department for the purpose of retaining individuals in the
California National Guard. It is estimated that only a few
CNGEAAP recipients attended Heald at the time of the closure.
Staff recommends the bill be amended to provide restoration
for CNGEAAP recipients who attended a Heald College in the
same manner it does for Cal Grant recipients.
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8)Student Tuition Recovery Fund (STRF). STRF reimburses "economic
loss" for California residents enrolled in eligible
institutions at the time of closure. Economic loss includes a
student's tuition, cost of required equipment and materials,
and interest on student loan debt used to pay those charges.
It does not include supplies, living expenses, or damages such
as emotional distress. Although the Act requires the Bureau
to establish regulations providing relief for a student whose
charges were paid by a third party, (such as an employer or a
financial aid program) the Bureau for Private Postsecondary
Education (BPPE) has not yet adopted these regulations.
The STRF is supported by fees collected from each student at
regulated schools. The amount of this fee was reduced to zero
effective January 1, 2015 as the current balance
(approximately $28 million) exceeds the statutory cap of $25
million. This bill would increase the cap to $50 million in
order to accommodate the increased demand that would be
created by the expanded STRF eligibility created by its
provisions. The Bureau estimates it has received about 130
STRF claims from eligible Corinthian Colleges, Inc. (CCI)
students.
As previously noted, this bill extends the right to
reimbursement from STRF to students who were enrolled at
Heald. As such this group of students would be placed in a
unique position of potentially benefiting from both STRF and
the Cal Grant program. Arguably restoral of Cal Grants would
provide Heald students more immediate relief than that
possible under the STRF process. But the committee may wish to
consider:
a) Should the state underwrite the restoral of Cal Grants
which might otherwise be reimbursed to these students under
the "economic losses" relief for charges paid by a third
party?
b) Should the state be the "first payor" of benefits
intended to compensate students harmed by the actions of a
private, for-profit institution?
c) If Heald students are eligible for STRF, should the bill
be amended to require reimbursement to the Cal Grant
program for any restoral awards provided to them?
1)Private loans. Federal rules require that institutions receive
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at least 10% of revenues from non-Title IV sources ("90/10
rule"). These other sources can include state aid, veteran's
aid, and private loans, among other sources. In 2013, the
federal Consumer Financial Protection Bureau (CFPB) accused
CCI of luring students into its "Genesis" loan program in
order to meet the federal "90/10 rule". According to the
CFPB complaint, in order to meet the 90/10 rule, CCI increased
tuition in order to create "funding gaps" so that students
would be required to take out private loans to pay for their
education. Corinthian Colleges, Inc. (CCI) offered students
their own "Genesis" loans to cover the funding gaps.
According to the Consumer Financial Protection Bureau (CFPB),
by 2014 the outstanding balance of Genesis loans totaled $560
million. The complaint sought, among other monetary penalties
and student relief, the rescission of all CCI private loans
originated since 2011. Several other legal actions and
investigations have been initiated by state attorneys general,
federal agencies, and the United States Department of
Education (USDE) and these complaints include allegations
related to CCIs Genesis loans. Unlike federal student loans,
there are no standard discharge provisions for private loans
and payments are subject to lenders' requirements.
2)Related informational hearing. On May 13, 2015, the Senate
Education and Business, Professions and Economic Development
Committees convened a joint hearing, Corinthian College
Closures: What's next for California Students? According to
information provided by the Legislative Analyst's Office
(LAO), CCI institutions included 10 Heald campuses, 11 Everest
campuses and 2 Wyotech campuses and enrolled about 10,000
California students. The Committees also heard from multiple
state agencies including the Attorney General, California
Student Aid Commission, and the Bureau and learned that
multiple federal and state investigations have revealed that
the Corinthian Colleges misrepresented job placement rates to
students, unlawfully used official United States military
seals, misrepresented the transferability of credits, engaged
in unlawful debt collection practices in its private loan
program and targeted the most vulnerable of potential students
with annual incomes often near the federal poverty line. As a
result of this hearing, the committees and bipartisan
leadership of the Senate submitted a letter to the US
Department of Education articulating their concern that these
students be informed and supported so that they could achieve
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their academic goals while minimizing financial burdens
directly related to student loan debt and requested that USDE:
a) Proactively inform students of their right to a closed
school loan discharge.
b) Provide students current, reliable information about loan
discharges, streamlined application processes, and extend
priority consideration of discharges for students impacted
by the CCI closures.
c) Make certain borrowers eligible for loan forgiveness under
defense to repayment provisions.
d) Ensure that students understand how a closed school loan
discharge will affect future eligibility for federal
student aid programs or their ability to transfer to other
colleges or universities through non-biased academic and
financial aid counseling resources.
e) Refrain from advising students that they can consider
transferring to other institutions that may put them at
continued risk and that such institutions be removed from
the list of transfer options provided to students.
f) Provide students with an "in-person" option for counseling
as these students needed more proactive attention than
referral to a website.
3)Related federal actions. On June 8, 2015, the United States
Department of Education (USDE) announced steps being
undertaken to specifically address the unique circumstances of
former Corinthian students. Among these, the USDE reports that
it is:
a) Expanding eligibility for students to apply for a closed
school loan discharge by extending the window of time back
to June 20, 2014.
b) Contacting potentially impacted student borrowers to
provide clear information about their options, including
loan discharge applications, in addition to providing
enhanced information on the Department's website.
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c) Working with organizations and institutions, some
specifically in California, to establish an independent
volunteer advising corps to help students navigate and
determine which loan forgiveness option is best suited to
their situation.
d) Relying on evidence established by appropriate authorities
in considering whether whole groups of students (for
example, an entire academic program at a specific campus
during a certain time frame) are eligible for borrower
defense relief in order to simplify and expedite the relief
process, and reduce the burden on borrowers.
e) Appointing a Special Master to oversee borrower defense
issues and offering students seeking such relief the option
of immediately placing federal loans into forbearance while
it works to resolve students' claims.
The Department specifically cites its investigation and
analysis of Heald College and relevant California law, where
it determined that evidence of misrepresentation exists for
students enrolled at Heald College campuses between 2010 and
2015 and that these students may have their federal loans
forgiven and receive refunds for amounts paid based on a
simple attestation.
4)Corinthian Colleges, Inc. (CCI) related history. As a part of
the informational hearing referenced in staff comment #10 the
Legislative Analyst's Office (LAO) provided a timeline of
events related to the Corinthian closures. The timeline is
attached as part of this analysis.
5)Double-referral. This bill was previously heard by the Senate
Business, Professions and Economic Development Committee which
has jurisdiction over bills relating to business and
professional practices and periodically conducts sunset review
of various boards and licensing agencies, including the
Bureau. In addition to
the provisions specifically affecting Corinthian students, the
Committee adopted broader changes to strengthen the Act in
anticipation of other potential school closures.
Specifically, this bill now authorizes the collection of
Student Tuition Recovery Fund (STRF) for students enrolled in
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a distance education program that has a physical presence in
the State and authorizes institutions to pay the STRF
assessment on behalf of their students. It also creates an
ongoing dedicated single point of contact within the Attorney
General's Office to assist any student harmed by a for-profit
institution's closure. The Committee analysis also notes that
the appropriateness of exemptions from the Act will likely be
the subject of future discussions by the Committee.
SUPPORT
Board of Governors of the California Community Colleges
California Community College League
California Competes
California Federation of Teachers
California SEIU
California Student Aid Commission
Center for Responsible Lending
Consumer Federation of California
Public Advocates
Public Law Center
The Institute for College Access and Success
University of San Diego Center for Public Interest Law
University of San Diego Children's Advocacy Institute
University of San Diego Veterans Legal Clinic
OPPOSITION
None received.
-- END --