Dept of Ed: Offer Loan Forgiveness to Former Students of Education Corp of America
17 signatures so far
For-profit colleges have an *extensive* track record of screwing over students.
For-profit college promises student a bright future & lucrative career; student pays a lot of money to attend said college, but college shuts down due to bankruptcy/lawsuits regarding exploitation, fraud, etc., and student is stuck with thousands of dollars of student debt for a degree that’s essentially useless from a college that no longer exists.
Fortunately, courts have been cracking down on such cases to defend students and hold for-profit institutions accountable. Last September, the Education Department was ordered by a federal judge to forgive $150 million in federal student loans tied to Corinthian Colleges, the for-profit chain that closed in 2015 due to fraud and predatory lending. More recently, 49 state attorneys general required for-profit chain Career Education to cancel $500 million in outstanding student debt for misleading borrowers.
Now, we’re asking for justice regarding (yet another) for-profit institution. Education Corporation of America just closed their doors, leaving 20,000+ students with mounds of student debt for partially completed degrees and credits that most other schools won’t accept.
Under the closed-school discharge program, students have the legal right to have their loans discharged by the Department of Education. Under the newly-implemented Borrower Defense Rule, the Department is legally required to automatically discharge loans for some eligible students. Let’s make sure the Department of Education does their job and offers loan forgiveness to former students.
Education Corporation of America is the latest for-profit college chain to close, leaving 20,000+ students with mounds of debt for partially completed degrees. Let’s make sure the Department of Education offers student debt relief to these former students, as they’re legally required to do under the Borrower Defense Rule.