Madigan looks to have student loans dismissed for defunct colleges

COOK COUNTY — Illinois Attorney General Lisa Madigan says students who attended the failed Everest Colleges should not have to repay federal student loans.
Madigan and attorneys general in eight other states are asking the U.S. Department of Education to discharge the loans of students who attended for-profit schools operated by Corinthian Colleges.
Corinthian operated six Everest Colleges in Illinois before being forced to close last year.
The attorneys general say the Education Department has the authority to cancel loans if students are harmed by a college.
They say Corinthian preyed on veterans, single parents and first-time college students by promising jobs and high earnings.
The school has indicated it plans to file for bankruptcy, which Madigan says probably will limit what students might be able to recoup through legal action.