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June 9, 2015

so corinthian only cost taxpayers a couple billion dollars

A month or so ago I was sputtering with rage because the Corinthian family of for-profit colleges are naked scams that bilks the Feds out of billions in guaranteed loans and then runs the business into the ground like a fucking Jart. Oddly enough, there appears to be a bit of good news concerning this, at least with regard to the students who got suckered into attending one of the Corinthian Colleges:
In a move against what he called "the ethics of payday lending" in higher education, Secretary of Education Arne Duncan announced Monday that the Education Department would forgive the federal loans of tens of thousands of students who attended Corinthian Colleges, a for-profit college company that closed and filed for bankruptcy last month, amid widespread charges of fraud.

Mr. Duncan also said the department planned to develop a process to allow any student -- whether from Corinthian or elsewhere -- to be forgiven their loans if they had been defrauded by their colleges.

That's a good one, "the ethics of payday lending" — credit where credit is due.

So good for the students who were bilked and that will be repaid. But here's some questions: So sure, the great Corinthian experiment of for-profit education fell on its face. But before it did, exactly how much money did the owners, CEOs, management etc. make? And considering that it's a couple billion dollars of public money that's going to remedy this, shouldn't maybe the public try to get some of the money back from the criminals behind this fraud in the first place?

And second, it's great that the students who were enrolled at the time of Corinthian's failure are being bailed out from their student loans. But what about all the other students, the one who graduated with a useless degree, the ones who never finished but still have tens of thousands of dollars in loans, before Corinthian failed? What about them? Shouldn't they be bailed out too?

Posted by mrbrent at 11:33 AM