THE WASHINGTON POST: Elizabeth Warren wants the government to forgive the debt of students allegedly duped by Corinthian Colleges

Career College Central Summary:

  • Sen. Elizabeth Warren and other Senate Democrats are calling on the Department of Education to forgive the debt of thousands of students who attended the failing for-profit giant Corinthian Colleges, following the controversial sale of the school’s campuses to a student loan debt collector.
  • Lawmakers and student advocates have been critical of the $24 million deal last month allowing ECMC Group, which collects student debt for the government, to run more than half of Corinthian’s 107 campuses.
  • After receiving a blessing from the U.S. Education Department, the company, which has no experience teaching, is set to oversee campuses serving nearly 40,000 students.
  • But critics say the department should have just closed the Corinthian campuses, which have been criticized for saddling students with debt they can’t repay. If the campuses had been closed, borrowers would have been eligible for a discharge of their federal loans.
  • On Tuesday, a group of 13 Senate Democrats, led by Warren, sent a letter urging the Department of Education to at least discharge the loans of former Corinthian students who are battling the company in court.
  • Corinthian is facing dozens of lawsuits from students and state attorneys general in Massachusetts and California for allegedly using deceptive marketing to lure students into taking out loans they had no hope of paying back.
  • The Education Department has also accused the company of misrepresenting graduation and job placement rates to the government.
  • “When students take on loans to pay for college,” the senators wrote in the letter, “they are making a serious financial decision that will affect them for years to come…If colleges fail to hold up their end of the bargain — if they break the law in ways that bear on their students’ educational experience or finances — students should not literally be stuck paying the price.”

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THE WASHINGTON POST

Photo credit: Warren.Senate.gov

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