Texas Attorney General Ken Paxton today announced a settlement with Aequitas, a now defunct private investment firm that provides over $17 million in debt relief for Texans who attended schools operated by Corinthian College. The settlement was first approved by the Oregon federal court overseeing the Aequitas receivership and is part of a broader agreement totaling $192 million for students across the country.
A multistate investigation revealed that Aequitas entered a complex financial relationship with Corinthian to fund the Genesis Private Student Loan Program. That program enabled Corinthian to present a sham façade of compliance with federal law and engage in deceptive practices toward borrowers who were unaware of the scheme and the risks associated with the loans.
“Students are among Texas’ most valuable resources and my office will act to protect them from deceptive practices,” Attorney General Paxton said. “This settlement provides relief to Texans victimized by a student loan program that took advantage of their aspirations to further their education.”
Texas was among 13 states participating in the settlement. Before its shutdown, Corinthian operated in Texas principally under the name Everest College with campuses in Houston, Dallas/Fort Worth, Austin and San Antonio.
To view a copy of the settlement, which was filed in Travis County District Court, click here: http://bit.ly/2ganHrn