Debt Resistance Grows, Attorney General’s Call For Loan Forgiveness
Top state prosecutors from Oregon to Massachusetts, who contend they have evidence that thousands of Americans were fraudulently urged to take out federal student loans to attend dodgy for-profit schools, urged the U.S. Department of Education on Thursday to forgive the borrowers’ debts.
The group of nine Democratic attorneys general demanded that Education Secretary Arne Duncan use his existing authority to cancel debts for students who attended schools currently or formerly owned by Corinthian Colleges Inc., a once-multibillion-dollar company that owned more than 100 for-profit schools with names such as Everest, Heald and Wyotech.
The Thursday letter follows similar requests made by Senate Democrats and appeals from consumer groups, such as the National Consumer Law Center, that the Education Department grant debt relief to those who attended Corinthian’s schools.