SACRAMENTO – The U.S. District Court has refused to dismiss California’s lawsuit against the U.S. Department of Education over its failure to discharge the loans of former students from for-profit and now-defunct Corinthian Colleges Inc.

California Attorney General Xavier Becerra sued the Department of Education in 2017 for failing to process debt-relief claims submitted by tens of thousands of students who took out federal student loans to attend Corinthian.

Students became eligible to apply for this relief after the courts and the Obama-era Department of Education found that Corinthian defrauded these students in violation of California consumer protection laws.

These findings were based in large part on investigative work conducted by the California Attorney General's Office.

More than one in four of those students with pending debt relief claims resided in California.

“We applaud this decision denying the Department of Education’s attempt to run and hide from accountability,” said Becerra. “This decision means that we can continue fighting in court for the tens of thousands of Corinthian students who enrolled in shoddy for-profit college programs, only to be saddled unfairly with debt and abandoned by Secretary Betsy DeVos. These students had every right to pursue an education and deserve the relief that they are eligible for under the law.”

Attorney General Becerra has defended defrauded student borrowers and the Borrower Defense Rule:

– On July 6, 2017, he joined a coalition of 19 state attorneys general in filing a lawsuit against the Department of Education for unlawfully delaying the implementation of the Rule.

– On July 13, 2017, he joined a coalition of 21 state attorneys general in criticizing the Department for proposing a new rulemaking process to replace the Rule.

– On March 5, 2018, he led a coalition of 20 state attorneys general in submitting a letter to the Department opposing the proposals it offered during its rulemaking sessions to redraft regulations on borrower defense.

– On Aug. 30, 2018, he led a coalition of 21 attorneys general to submit a comment letter sharply rebuking the Department’s proposed changes to borrower defense regulations.

A copy of the decision can be viewed here.