“Sen. Elizabeth Warren and other Senate Democrats are calling on the Department of Education to forgive the debt of thousands of students who attended the failing for-profit giant Corinthian Colleges, following the controversial sale of the school’s campuses to a student loan debt collector,” The Washington Post reports.
“Lawmakers and student advocates have been critical of the $24 million deal last month allowing ECMC Group, which collects student debt for the government, to run more than half of Corinthian’s 107 campuses.
After receiving a blessing from the U.S. Education Department, the company, which has no experience teaching, is set to oversee campuses serving nearly 40,000 students.
But critics say the department should have just closed the Corinthian campuses, which have been criticized for saddling students with debt they can’t repay. If the campuses had been closed, borrowers would have been eligible for a discharge of their federal loans.
On Tuesday, a group of 13 Senate Democrats, led by Warren, sent a letter urging the Department of Education to at least discharge the loans of former Corinthian students who are battling the company in court. …
The Democrats say the department has broad authority to cancel federal student loans when colleges violate students’ rights and state law, yet the agency has failed to weigh in on the fate of former Corinthian students.
Department of Education spokeswoman Denise Horn did not address the demands made in the letter, but said the agency appreciates “the senators’ concerns for the welfare of Corinthian students” and would continue ‘to work on behalf of students’ best interest.'”