Students Should Not Be Forced to Pay For Corinthian Colleges’ Fraud
Since at least 2007, audits and government investigations have revealed widespread deception throughout Corinthian Colleges’ student recruitment system. The U.S. Department of Education ignored its duty to protect Corinthian students.
Instead, the Department facilitated Corinthian’s sophisticated scheme to bilk thousands of low-income students of their dreams, while leaving taxpayers to foot the bill. Now, the Department relentlessly pursues Corinthian borrowers for repayment of their federal loans.
On May 19, 2015, more than 78,000 individuals as well as 51 national and local consumer, labor, and community groups sent a clear message – expressed in a set of petitions and letters to Secretary of Education Arne Duncan – that the U.S. Department of Education (the Department) has a duty to cancel the federal student loans of all borrowers harmed by Corinthian Colleges without requiring each one to prove Corinthian’s fraud.
The detailed petition circulated by the National Consumer Law Center lays out a blueprint for providing widespread relief to students at Corinthian and borrowers harmed by other for-profit schools. The groups also agree that the Department must protect future students and taxpayers by taking more aggressive action to crack down on schools that violate state or federal laws. Groups who collected signatures include: National Consumer Law Center (on behalf of its low-income clients), Americans for Financial Reform (AFR), AFT – American Federation of Teachers, Democracy For America, Higher Ed, Not Debt, and Student Debt Crisis.