The lawsuit seeks forgiveness of almost $569 million in private loans that nearly 130,000 Corinthian students took out from July 2011 and March 2014. The CFPB is also asking the court to order redress for all Genesis loans made by Corinthian since July 2011.
"We believe Corinthian lured in consumers with lies about their job prospects upon graduation, sold high-cost loans to pay for that false hope, and then harassed students for overdue debts while they were still in school," said CFPB Director Richard Cordray.
In response, Corinthian said in a statement that it "strongly disputes the allegations in today's complaint filed by the Consumer Financial Protection Bureau, which wrongly disparages the career services assistance that we offer our graduates and mischaracterizes both the purpose and practices of the "Genesis" lending program."