Student Loan Deadbeats Unite!

Calling themselves the “Corinthian 100”, students who attended a college operated by the for-profit educator Corinthian Colleges, Inc. are refusing now to pay their student loans. They are calling on the Education Department to discharge the $500 million in private student loans taken out by Corinthian students.

Corinthian took a buy out from student loan guarantor ECMC Group Inc. last November and the schools that were still viable have been placed under a new nonprofit, Zenith Education Group.  Prior to that Corinthian  faced numerous lawsuits and investigations over credit transfer claims made to students and high default rates among students that exceed Federal standards.

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Former students of the Corinthian colleges claim that their degrees are worthless now and that the Education Department should have better regulated the for profit educator and informed students that it was in trouble.

The Education Department did release a list yesterday of institutions that are on “heightened cash monitoring” due to concerns over how the educators are handling their financial aid programs. You can see the complete list of 550 schools at the end of this article from The Chronicle of Higher Education.

4 Comments on Student Loan Deadbeats Unite!

  1. I guess that they didn’t get far enough in their studies to realize that the Education Dept. can’t just “discharge” loans, they have to pawn them off onto the backs of the taxpayers?

    THAT mule’s carrying a pretty heavy load, now.




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  2. Even us old farts knew way back when that any undergraduate degree (excluding engineering or accounting) was worthless unless you used it as a stepping-stone to grad school and earned an MBA or a professional degree. We also knew that you had better be adaptable and be able to learn new skills because there are no guarantees in life and change is a given.

    Myself, I earned an undergrad degree in Liberal Studies from a California State school that cost a whopping 5 grand. I eventually went to work in high-tech and have been there ever since. My degree didn’t open any doors — nor did I expect it to. I got to where I am because of patience, persistence and the willingness and ability to acquire new skills. My Liberal Studies degree may be worthless professionally, but it was well worth it on a different level.

    The Entitlement Generation only has themselves to blame.




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  3. Caveat Emptor applies to education too.

    Government involvement in student loans shields too many big dreamers from the consequences of their choices, until they come to realize that you can’t default on student loans, you can’t declare bankruptcy; they are the only loans that a person can’t escape.




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