In the wake of allegations of fraud, one of the nation’s largest for-profit universities is closing its doors to tens of thousands of students, and fortunately for them, the U.S. Department of Education says it’s going to forgive those students’ federal loans and the loans of any student who has been defrauded by his or her college.
While former Corinthian students may be celebrating, the cost to taxpayers of the government forgiving these loans could be huge. The Department of Education that the cost could be $3.5 billion if all 350,000 Corinthian students over the last five years apply for and get the debt relief.
Is Corinthian just the first domino to fall? Have we seen patterns of fraud or high tuition/low academic standards in other for-profit colleges and universities? What other for-profit schools have been investigated?
Here’s more info on what Corinthian Colleges students need to know about debt relief, from the U.S. Department of Education.
Osamudia James, professor of law at the University of Miami where she writes and teaches about education, race, and the law. She recently wrote an op-ed in the New York Times, titled “When For-Profit Colleges Close, Student Debt Should Be Forgiven.”