First nationalize pupil loans claiming this can get monetary savings for taxpayers. Next let college students pile up debt at for-profit schools. Then prosecute these schools for fraud and put them out of enterprise. Then forgive all of the debt and stick taxpayers with the invoice.
That’s basically the political parable of Corinthian Colleges, as instructed by
Kamala Harris.
The Vice President ambushed Corinthian whereas she was California Attorney General. She started investigating the for-profit in 2013 for allegedly misrepresenting job-placement charges, however she struggled to help her claims. The Education Department rode to her rescue by making exhaustive doc calls for.
Obama Administration officers then complained the faculty wasn’t producing paperwork quick sufficient, and the Education Department minimize off federal pupil assist. This drove Corinthian into chapter 11 and stranded tens of hundreds of Corinthian college students.
The Obama Administration then agreed to forgive $171 million in authorities loans for Corinthian college students nonetheless at school. In 2016 a state decide handed Attorney General Harris a default judgment towards Corinthian, which she flogged throughout her marketing campaign for U.S. Senate. What a intelligent authorized technique: Bankrupt an organization so it might probably’t defend itself.
But progressives, by no means glad, have demanded that the feds cancel the debt of each borrower who attended Corinthian since its founding in 1995. The Trump Administration refused this as a horrendous precedent that might let college students off the hook for repaying loans if their school is accused of fraud.
The Biden Administration has no such qualms. On Wednesday the Education Department introduced it might forgive $5.8 billion in debt for 560,000 former Corinthian college students. “The action is the largest single loan discharge the Department has made in history,” the Department boasted, crediting Ms. Harris, who took a victory lap on Thursday at a press convention.
This is an invite for Democratic AGs to make baseless costs towards schools. They solely goal for-profits, although nonprofit and public schools aren’t any saints. Meantime, the Education Department is engaged on a rule to supply debt aid to for-profit debtors who declare to have been defrauded. The actual fraud was the Democrats’ student-loan takeover in 2010, which they claimed would get monetary savings and can now value taxpayers many billions if not trillions of {dollars}.
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Appeared within the June 3, 2022, print version as ‘A Reading From Kamala to the Corinthians.’
Source: www.wsj.com”