THE MARKET BUSINESS: Corinthian student debt to be waived off: ‘Attorney General’

Career College Central Summary:

  • The attorney general, in California Kamala Harris and nine other states is pushing in hard to erase debts due against the students who are in constant trouble because of giant Corinthian Colleges.
  • In a letter sent Thursday to U.S. Department of Education Secretary Arne Duncan, the attorneys general argue that the Santa-Ana based for-profit college has engaged in predatory business practices and its students should have their $1 billion-plus federal student loan obligations forgiven under existing regulations.
  • The Education Department may discharge student loan debt where schools “broke state law by deceiving students and failing to provide promised education or services,” the letter says.
  • Harris and attorneys general in Massachusetts and Wisconsin are suing Corinthian over charges that the company misled students with inflated job placement statistics and targeted vulnerable populations with high-cost loans.
  • “These students deserve relief,” says the letter to Duncan, obtained by the Register. “While various enforcers are pursuing Corinthian, these actions will not be enough to provide prompt help to Corinthian’s victims.”
  • The letter follows similar requests by 13 U.S. senators in December and a group of former Corinthian students who call themselves the “Corinthian 15.” The students are refusing to pay their federal student loans as part of a “debt strike,” arguing they are victims of fraud.
  • More than 100 Corinthian students are now participating in the strike, according to organizers.

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