Department of Education forgiving private college debt

The DoE is just streamlining the process - forgiving the debt was already the law. And Corinthian didn't straddle the line - they just committed outright fraud and lied to their students (and the Feds).

 

Actually it was the Department of Education's responsibility to shutter the school and reject their student loans in the first place if it was complete garbage. There's a bit of a catch-22 with for profit colleges, not just because of the demand for accessible and in some cases affordable post-secondary education, but also to maximize employment opportunities for graduate and post-doctorate professionals: as there simply aren't enough stable, well-paying teaching or research posts to go around.

 

by forgiving do they mean all of us taxpayers are footing the bill?

 

Congress (both parties) and lobbyists. The Obama Administration fought to curtail these things earlier, but while they made some progress with executive action, they lost the larger battle in Congress. And Congress is currently trying to roll back the executive action as well:

https://www.insidehighered.com/news...higher-ed-act-year-backs-plan-cut-regulations

On a side note, these are the same risks faced with school voucher programs - ultimately, anywhere there's an opportunity for the private sector to profit from government, there's going to be risks of fraud - whether it be for-profit education, Medicare, defense spending, etc.

 

Not really sure what that means. But from a consumer standpoint, the company was being paid for it's services. If service was not rendered, then the money has to be refunded and in this case, loans do not have to be paid.

 

The loans should have never been made in the first place. The idea that someone can borrow money from the federal government and then just waste it is absurd. Hopefully this type of story causes the government to be a little more careful with their loans. The for-profit college industry exists because of the ease in which federal student loans can be doled out. Perhaps it's time to stop that gravy train. Actually, we are well past time to stop this scam.

 

I agree. It's ridiculous. A whole industry basically sucking in government funds to provide a scam of an education.

 

true. And maybe this will go some way to fixing that.

But the forgiveness of these current loans is just fallout from the current system. The students were defrauded/misled/taken advantage of here. Feds approved the loans.

 

LOL. I'm sure.

 

Big banks were bailed out. This is just bailing out poor kids. The move won't be as profitable as bailing out the big banks, but sometimes the government has to do it.

 

There are plenty of people who attended a legitimate college and can't get a job and are in debt up to their eyeballs... And much of that debt is accrued because of unnecessary courses colleges make people take. But in this case the government shares responsibility in letting them rip people off.

 

Sometimes the road to hell is paved with good intentions.
Even legitimate schools were able to raise tuition and focus on non necessities because virtually anyone out of high school could get loans and the government backed it.

 

I don't disagree.



The way this administration handles future student loan forgiveness will be a lightning rod issue. I am sure they are running the numbers on the best route to take. Personally, I am not of fan as these folks knew what they were agreeing to when they signed up.

 

good

lol at blaming victims of fraud

 

Sweet kids can party in college for free