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posted by martyb on Friday December 11 2015, @02:51AM   Printer-friendly
from the at-the-speed-of-government dept.

The Huffington Post reports

The U.S. Department of Education will cancel $27.8 million in federal student loans owed by some 1,300 former students of defunct for-profit school chain Corinthian Colleges Inc. after determining that the students were swindled into taking on the debt, according to a government report released [December 3].

The move marks the first recent use of a little-utilized provision in federal law that gives student debtors the right to petition the Education Department to discharge their debt in cases where they were defrauded into taking out loans.

The debt forgiveness plan only affects 1 percent of the roughly 125,000 student debtors who are eligible for expedited debt cancellation. That comes to about 2 percent of the students' nearly $1.3 billion in combined loan balances. The department said in June and November that those borrowers were eligible for immediate loan relief after determining that Corinthian had likely defrauded the former students by advertising false job placement rates.

[...] Borrower advocates [Debt Collective] criticized the department, led by Secretary Arne Duncan, for the paltry number of approved debt relief applications and the relatively small number of applications the department has received, compared to the number of eligible borrowers.

[...] "The department funneled billions of dollars to executives and shareholders of these fraudulent 'schools' for over a decade" [...] "It now wants to save face by creating a Rube Goldberg-type contraption to prevent as many people as possible from seeking the relief they deserve."

[...] Thursday's move comes six months after Education Undersecretary Ted Mitchell said the government would "fast track" applications submitted by students who attended certain programs at Heald College, a primarily California-based career school owned by Corinthian.

As the USA presidential race plods on, a footnote:

[More after the break.]

Bloomberg has reported

[In the summer of 2014], Senator Marco Rubio of Florida asked the U.S. Department of Education to "demonstrate leniency" toward Corinthian Colleges by permitting the wealthy for-profit company to continue accessing millions of dollars in federal financial aid while it was cooperating with a federal investigation.

Bloomberg has further reported

In the last five years, Florida Senator Marco Rubio's various political operations have accepted $27,600 in contributions from Corinthian Colleges.

The most recent donation [was from] Mark Pelesh, who was listed as a "business executive" for Corinthian Colleges. The donation came on April 30, one day after [Bloomberg's report noted above.]

Previous Corinthian Colleges stories

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  • (Score: 0) by Anonymous Coward on Friday December 11 2015, @04:57AM

    by Anonymous Coward on Friday December 11 2015, @04:57AM (#274813)

    This is a tedious game, where the first one to accuse the other of being a SJW is the winner.

    Grow up, you guys.

  • (Score: 3, Funny) by aristarchus on Friday December 11 2015, @05:39AM

    by aristarchus (2645) on Friday December 11 2015, @05:39AM (#274821) Journal

    No, you grow up first! I don't want to grow up! I don't want to go to school! Just learn to be a Parrot! And recite a silly rule! Hey, do I win a prize, or if I clap do I get the Julia Roberts Tinkerbelle? I love tinkering with belles!

    And, in case you missed it due to both a lack of native intelligence and the proper education, I am a Social Justice Warrior, says so right on my T-shirt! So anyone calling me that I take as compliment. The oxymoron is that those who j'accuse! are in fact not saying what they think they are saying, which is just, . . . wait for it! . . . . inconceivable! And I attribute that to a failure of education. Here is the point: American education is messed up almost beyond saving. The end of the "No Child gets away without defamatory testing act", which I hear just happened, is a good start. But I have to say, as an ancient Greek, that Americans have no idea what education is really about! This is why they keep having scandals like Corinthian and Harvard and Stanford! Americans tend to think that education has something to do with making more money. Well obviously by this definition we can have people who are "highly educated" and at the same time complete and utter absolute morons! Did I mention Donald Trump? No? Well, case in point. Education is not just the acquisiton of knowledge that can be sold, that is prostitution, which does describe most STEM (Slutty Temptresses of Erotic Management? I can NEVER remember acronyms!) degrees offered by American institutions of higher slavery. But like I said, just because you went to an actual university that does not guarantee intelligence or a Social Justice Warrior consciousness, but it you went to a Corinthian school, or the University that is not in Phoenix, or Bob Jones University and Wacko Fundamentalist Breeding Experiment School, or Liberty or Regent, we can reasonably assume that you are sophmoric, at best. And possibly much, much worse, like Ted Cruz.

    "Believe it or not, your opinion on this topic is really not necessary,"
    • (Score: 0) by Anonymous Coward on Friday December 11 2015, @06:07AM

      by Anonymous Coward on Friday December 11 2015, @06:07AM (#274828)

      step away from the keyboard...

      • (Score: 3, Funny) by aristarchus on Friday December 11 2015, @06:38AM

        by aristarchus (2645) on Friday December 11 2015, @06:38AM (#274839) Journal

        NO, you step away, you collaborator with the destruction of all that is good in the world! America had a chance! I have been on this planet for 2400 years, and holding Athens in its prime aside, American represented the greatest hope for humanity. And now, they throw it away for a dwindling chance at being middle class or at least safe from terrorism? And you say I should step away? Cretin. Poltroon. Debilitant! Kakos! OK, thanks for letting me know.

        "Believe it or not, your opinion on this topic is really not necessary,"