it has begun - taxpayers bailing out college loans

[cheka.]

once again, it pays to be reckless

http://www.wsj.com/articles/education-department-forgives-171-million-in-debt-owed-by-former-corinthian-students-1467234919

Education Department Forgives $171 Million in Debt Owed by Former Corinthian Students

More than 11,000 former students of the for-profit college chain owed an average $15,280 each

WASHINGTON—The Obama administration has agreed to forgive $171 million in student debt held by former students of the defunct Corinthian Colleges Inc., the toll of a for-profit school boom that is likely to grow as the government continues to investigate schools accused of fraud.

The report released Wednesday by the Education Department provides the most detailed accounting yet of the taxpayer cost of the collapse of Corinthian, once among the nation’s largest for-profit college chains. The company liquidated in bankruptcy last year amid federal and state allegations that it advertised fraudulent statistics about the career success of its graduates. Corinthian had denied wrongdoing.

The Education Department, under pressure from student advocate groups, turned to an obscure law known as “borrower defense,” which relieves borrowers of their obligation to repay if they prove they were defrauded. Additionally, the law forgives debt for students whose schools close before they finish their studies.

Through June 24, the government agreed to discharge roughly $171 million for 11,173 former Corinthian students, who owed an average $15,280 each, according to a report from Joseph A. Smith Jr., the special master hired by the Education Department to sort through the claims. Two-thirds of those borrowers won discharges because their schools closed; the remaining third were former students who federal investigators found had been defrauded.

The government is sorting through thousands of other claims and may issue more relief in coming weeks or months. A total 26,603 borrowers had filed claims under borrower defense, Mr. Smith said. Of those, 87% were students who attended Corinthian brands such as Heald, Everest and WyoTech.

[cheka.]

there's more at this article -- I had to stop pasting....making me ill

anyone with any sense should rush into every lending bubble and go big

http://www.huffingtonpost.com/2015/06/04/corinthian-colleges-loan-forgiveness_n_7492908.html


The fortunes of for-profit colleges tracked the Great Recession in reverse: Corinthian’s stock price more than doubled between March 2008 and February 2009, just as unemployment spiked; enrollment increased more than 50 percent between fall 2008 and fall 2010. Widespread layoffs left people scrambling to acquire additional skills to compete in an impossible job market. And Corinthian recruiters sold prospective students on a dream: graduating college and ascending into the middle class, with career training that would pay off.

“They defrauded us, and we shouldn’t have to pay for it.”

More than 1 in 4 Corinthian graduates defaulted on their student loans, according to Education Department data. And for years, the Education Department not only failed to recognize the depths of the abuse, but effectively funded Corinthian’s business model, sending the company billions of dollars in financial aid to help cover students’ bills.


In 2008, Tasha Courtright visited the Everest College campus in Ontario, California, with a friend. She was not looking to pursue higher education. “The recruiter said, ‘How about you? Do you want to go to school?’” Courtright recalled.


“I said I can’t afford it, I can’t do loans,” she remembered, noting that she was working a minimum-wage job at a gas station when Corinthian first recruited her. “They said, ‘Let us do the numbers.’ They said I qualified for Cal Grants and Pell Grants, and I wouldn’t have to pay anything.”

By 2009, three-quarters of all U.S. students enrolled in for-profit colleges were at schools owned by a corporate conglomerate or private equity firm. Goldman Sachs owns around 40 percent of Education Management Corporation, another operator of for-profit colleges

According to Lueck, students signed an open-ended “master promissory note,” allowing the school to recertify new loan amounts every year. This would happen annually through a chaotic process known as repackaging, in which students would turn in financial information and the staff would shuttle them into new loans and grants.

Corinthian students attracted huge amounts of financial aid money from the federal government: Lueck, the former corporate finance manager, said the loan process moved so rapidly that students may not have understood they were giving college staff permission to sign them up for numerous loans. Sarah Dieffenbacher, a criminal justice major, rang up over $110,000 in loans without ever earning a bachelor’s degree, she wrote in a sworn declaration.

Close to 90 percent of the company’s revenue, around $1.4 billion per year, came from taxpayers.

[Glass]

but it will be the lazy students fault yes?

Will the govt get the money back from the colleges? Not likely.

[Ponce]

College only shows you the way, that must then you must walk on your own.

V

[Glass]

College only shows you the way, that must then you must walk on your own.

V

yes. unfortunately the colleges have been run like insurance funds - scams and no one will be held accountable for it. I know Americans love the idea that private enterprise needs to supply everything to get the best competitive advantage but there are quote a few things that should not be outsourced. in the least these things:

Roads/Rail/Ports
Hospitals
Schools
Electricity/Energy grids
Defense
Government

Companies can supply inputs to them however those inputs should be controlled and limited. Companies should never be given control of those things. The reason is: they are the commons. The social assets of a society and the society paid to create them it must always retain ownership of them.

Once this changes the social collateral will be asset stripped.

[cheka.]

but it will be the lazy students fault yes?

Will the govt get the money back from the colleges? Not likely.

lazy? more deadbeat than lazy. read the huffpost article i linked to.

college sought and obtained massive amounts of grants and federal loans for its students. lots of legit colleges and program choices

a lot of students signed up for the easier programs. those that have poor job placement. but the money was great -- tuition, living expenses, malt liquor money, tattoos, piercings

a group started community organizing to claim they shouldnt have to pay since they didnt get the job they expected. also a large number were not making payments already

the recession was used as the excuse to open the floodgates to more ninja loans - using skoolz as the injection point

every other student in america ought to be outraged that these fks are getting this deal.....taxpayers even moreso

[hoarder]

The Feral Gummit has a decades long history of excusing loans of all kinds, whether disaster relief, small business, college or whatever. If you are in the right sector (non-White), your loan is very likely to be forgiven.

[Ares]

yes. unfortunately the colleges have been run like insurance funds - scams and no one will be held accountable for it. I know Americans love the idea that private enterprise needs to supply everything to get the best competitive advantage but there are quote a few things that should not be outsourced. in the least these things:

Roads/Rail/Ports
Hospitals
Schools
Electricity/Energy grids
Defense
Government

Companies can supply inputs to them however those inputs should be controlled and limited. Companies should never be given control of those things. The reason is: they are the commons. The social assets of a society and the society paid to create them it must always retain ownership of them.

Once this changes the social collateral will be asset stripped.

Private enterprise is the way. What we have is crony capitalism. Do you honestly think colleges would cost this much for a 4 year degree if loans weren't available to anyone with a pulse? There is NO SUCH THING as a social asset, nor should there ever be a social asset because there is no competition and it breeds corruption.

In a truly private enterprise arrangement the ones who are wasteful, corrupt, and inept will self implode. What we have is state sanctioned theft by private enterprise with the government going and doing things it has absolutely no authority to do.

[Shami-Amourae]

I guess I was a dumb fuck for working really hard and paying off my $50,000 college debt.


http://img.4plebs.org/boards/pol/image/1448/94/1448942427933.jpg

[Joshua01]

I guess I was a dumb fuck for working really hard and paying off my $50,000 college debt.


http://img.4plebs.org/boards/pol/image/1448/94/1448942427933.jpg


That says it all right there. A feminism degree is about as useful as those degrees they give out for basket weaving. What a scam!