NEWSWEEK: 100 Students from a For-Profit College are Now Refusing to Pay Their Loan Debts

Career College Central Summary:

  • Last month, fifteen students from a for-profit college chain that regulators say acted as a predatory lender began publicly refusing to pay their loans. Now, the strike has grown dramatically. As of Monday, organizers say 100 students—all of whom attended the Corinthian Colleges Inc. chain for for-profit schools—have joined the strike.
  • Corinthian Colleges has been under scrutiny for some time. Last year, the federal Consumer Financial Protection board alleged in a lawsuit that Corinthian lured students with “bogus” job-placement statistics and saddled them with predatory loans. Corinthian even went so far as to “strong-arm” students into making loan payments while still in school, according to CFPB.
  • In addition to attracting more students, the strike has attracted the attention of the CFPB. According to the Debt Collective, the group of economic activists who jump-started the strike and are organizing legal support for the strikers, the CFPB has invited the strikers to meet with a group of federal regulators this Tuesday.

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NEWSWEEK

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