31 March 2015 - US student loans revolt
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A revolt is growing as more people refuse to pay back student loans
Danielle Douglas-Gabriel (The Washington Post)
Remember those 15 people who refused to repay their federal student loans? Their “debt strike” has picked up 85 more disgruntled borrowers willing to jeopardize their financial future to pressure the government into forgiving their student loans.
And the government is starting to listen. The Consumer Financial Protection Bureau has invited the group to Washington on Tuesday to discuss their demand for debt cancellation. Although the CFPB doesn’t have the power to grant that request, the agency’s overture shows that the strike is being taken seriously.
It’s been a month since 15 former students of the failing for-profit giant Corinthian Colleges said they would not pay a dime of their student loans because the school broke the law.
Read on...
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Meeting
Abby Jackson (The Business Insider)
They are now a 100-person cohort who claim Corinthian College used manipulative financial tactics while providing them with a subpar education.
And they've got a meeting with the Consumer Financial Protection Bureau (CFPB) and a representative of the Department of Education (DOE) on Tuesday to discuss their "student debt strike," according to one of their representatives.
"We're bringing about 12 of the strikers from around the country to meet with CFPB officials, and the Department of Ed are sending a representative as well, and we are going to ask them to cancel the debt," said Ann Larson, an organizer at the The Debt Collective, an all-volunteer group working alongside the Corinthian 100 to get their federal student loans torn up.
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For Profit
Kimberly Hefling (The Tribune)
Many of Corinthian’s troubles came to light last year after it was placed by the Education Department on heightened cash monitoring with a 21-day waiting period for federal funds. That was after the department said it failed to provide adequate paperwork and comply with requests to address concerns about the company’s practices, which included allegations of falsifying job placement data used in marketing claims and of altered grades and attendance records.
On Tuesday, the Education Department released a list of 560 institutions – including for-profit, private and public colleges – that had been placed on heightened cash monitoring, meaning the department’s Federal Student Aid Office is providing additional oversight of the schools for financial or compliance issues. The department said the effort was done to “increase transparency and accountability.”
The administration has taken other steps to crack down on the for-profit college industry, such as announcing a new rule last year that would require career training programs to show that students can earn enough money after graduation to pay off their loans. The rule has been challenged in court by the for-profit education sector.
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Consequences
Christine DiGangi (Money)
You have a lot to lose if you default on your student loans, and in some states, that includes state-issued licenses.
Failing to repay student loans has all sorts of terrible consequences, but in some states, more than just your financial well-being is at risk — student loan default could cost you your professional certification or even your driver’s license.
Two state legislatures (Iowa and Montana) are considering bills that would repeal laws that allow states to suspend the driver’s licenses of student loan defaulters, Bloomberg reported in a March 25 piece on the topic. Even if those repeals succeed, several other states have such laws in place. Some states suspend licenses needed to practice in certain fields, from health care to cosmetology, though license suspension can extend to driving, too.
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"31 March 2015 - US student loans revolt", La Clé des Langues [en ligne], Lyon, ENS de LYON/DGESCO (ISSN 2107-7029), mars 2015. Consulté le 16/04/2024. URL: https://cle.ens-lyon.fr/anglais/key-story/archives-revue-de-presse-2015/31-march-2015-us-student-loans-revolt