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CFPB last week filed a statement and proposed settlement of $183.3 million against Aequitas Capital Management Inc. for the part it played in Corinthian Colleges' predatory student lending practices.

Under the CFPB's proposed settlement, roughly 41,000 students could be eligible for the $183.3 million in loan forgiveness and reduction. The CFPB also said that several state attorneys general reached proposed settlements with Aequitas as well.

Aequitas and its related entities are based in Lake Oswego, Ore. Earlier this year, a receiver was appointed by the Securities and Exchange Commission to wind down and distribute any remaining assets of Aequitas.

The CFPB's complaint alleges that Aequitas violated the Dodd-Frank Act's unfair, deceptive, or abusive acts or practices requirement by aiding Corinthian's student loan program. In 2014, the CFPB sued Corinthian Colleges for tricking students into taking out tens of thousands of private loans, called Genesis loans, to cover tuition costs and for advertising fake job prospects and career services.

Since federal law requires for-profit schools to obtain at least 10 percent of their revenue from other sources to qualify for federal money, the bureau alleges that Corinthian was paying Aequitas to support its Genesis loan program, making it look like the school was getting outside revenue.

As part of last week's proposed settlement, if approved, Aequitas and its related entities would have to:

• forgive Genesis loans in connection with certain closed schools;
• forgive those Genesis loans currently in default; and
• reduced all the other Genesis loans by more than half.

A copy of the CFPB's complaint can be found here; a copy of the settlement here.