Local resident joins national fight against possible loan fraud
Students who attended colleges across the country owned and operated by Corinthian Colleges, Inc., are banding together to have their federal and private student loans forgiven because of Corinthian’s deceptive educational promises and predatory lending practices. Tecumseh resident Mallory Heiney has joined in the fight as part of the group Corinthian 15.Although most colleges and universities are considered to be nonprofit entities, for-profit colleges do exist in higher education. Corinthian Colleges, Inc. is a for-profit collegiate entity, and has been sued by the Consumer Financial Protection Bureau (CFPB) for its predatory lending schemes. CFPB Director Richard Cordray accused the chain of predatory lending practices, lying to prospective students about job prospects after graduation and using illegal debt collection tactics through its Genesis loan agency. Corinthian is accused of using threats and embarrassment to force students to begin repaying their loans before graduation.During her time working in Africa as a missionary, Heiney realized a medical degree would allow her to help more people in the impoverished area. When she returned home to the United States, her aunt suggested looking into a one-year accelerated licensed practical nurse (LPN) program at Everest Institute in Grand Rapids.Heiney liked the idea of returning to mission work quickly. She visited Everest to gather information and left the same day as an enrolled student.“I was going to look, and when I got in there it was like a feeding frenzy,” said Heiney.Knowing she would have living expenses to pay for, Heiney specifically asked if she would be required to pay back her loans while she was in school. After being reassured loans were repaid after graduation, Heiney was surprised to receive a $100 bill for one of her loans three months into the semester.When she contacted the Everest Institute Financial Aid Department, Heiney was told the bill was for interest on her loan and had to be repaid during her year of study at Everest. The cost of living away from home and carrying a full time load of classes meant Heiney was unable to hold down a job. She paid her bills through money earned playing guitar on the street and selling her own plasma.Adding to her stress and debt, Heiney and the other students at Everest were told at the beginning of their second trimester the loans already in place were not enough to pay for the books required for the next trimester’s classes. Students were required to take out another personal loan from Genesis.Three months from her graduation, Heiney heard rumors Everest College was closing. The closing was denied by administration at first, but as more and more professors were leaving, it became clear to students that something was wrong.A short time later the students were told the school would be closing. They were given three choices with regard to their education. First, they could finish their degree at another Corinthian school two hours away.A second choice was finishing the program even though there were not enough professors. Heiney wanted the third choice of leaving the program and having all her loans cancelled.“I want to be in the mission field,” Heiney said. “I knew how much I was in debt. I made the decision to opt out.”Everest discouraged opting out, at first nicely and then more aggressively. Heiney turned in paperwork for her loans to be dropped, and was turned down by Everest and had a subsequent appeal denied.“They bullied us into choosing to stay,” she said. “I was bamboozled all year long.”When Heiney finished the program she had a diploma and $35,000 in loans. The loan amount for the one-year program was a shock to her.“They didn’t make the amount clear when I started,” said Heiney.When she began preparing to take the required LPN board exam, Heiney realized the classes she had taken all year would not help her much with the material on the exam. She had to self-educate herself on exam material through study groups.Another unpleasant surprise for Heiney was how her credits would not transfer to other colleges. During an interview with an area community college, Heiney was told Everest College is on a blacklist. Employment wasn’t possible, as employers would not recognize Heiney’s education as legitimate.“We are taught to trust the educational system,” Heiney said. “What Corinthian is doing is ethically wrong. It’s the Department of Education’s job to make sure Corinthian is doing its job.”Heiney heard about a group fighting to eliminate student debt incurred from post-secondary predatory colleges. Ann Larson spearheaded The Debt Collective, a group designed to help individuals organize together to challenge creditors.The website, www.debtcollective.org, states, “We believe no one should go into debt for basic needs like housing, healthcare and education.”The group has organized a national student debt strike. Students mistreated by educational facilities, many of them part of Corinthian Colleges, Inc., are refusing to pay back their student loans, private and federal.“I had been fighting this alone,” said Heiney. “I called Anne Larson at Rolling Jubilee and said, ‘This is my story. How can I help?’”As part of the group, Heiney’s airfare and expenses were paid for her to travel to California two weeks ago and participate in an interview with New Yorker Magazine released on Monday, Feb. 23, and be part of the Debt Collective website. The article mentions the request made by the United States Senate, initiated by Elizabeth Warren (D – Massachusetts), of the Department of Education to discharge of federal loans held by students whose rights were violated by an educational institution.Between the debt strike and the U.S. Senate’s initiative to strike student debt, Heiney hopes to lose the debt weighing down her future. She is working part-time as a home health aide, which is the best job she could find with her Everest Institute degree.“Because of Corinthian’s actions, we should not have to pay our debt back,” Heiney said. “When we can all come together and collaborate, that’s when we have power. We stand together in solidarity. Someone has to stand up for what is right.”
Tecumseh Herald
Latest articles
-
Mon, 03/18/2024 - 9:21pm
-
Mon, 03/18/2024 - 4:04pm
-
Thu, 03/14/2024 - 3:00am