Why Can Fraudulent Schools Declare Bankruptcy When Students Can’t?
When ECMC Group announced it planned to buy 56 failing Corinthian College campuses, the Department of Education said ECMC would look out for student interests. But ECMC is hard at work lobbying Congress to extend Corinthian unprecedented benefits that would allow Corinthian to continue receiving federal student aid dollars – even if Corinthian declares bankruptcy.
If ECMC were truly looking out for students, it would ask Congress to help students who are facing financial hardship, and not bail out Wall Street corporations. Congress can help by changing the bankruptcy rules to allow students to discharge their student loan debt in bankruptcy just like other consumer debts. Americans have long used bankruptcy to get out of their most severe debts and get their lives back on track, yet student loan borrowers do not have the same opportunity.
ECMC should live up to its promise and ask Congress to act for students. Tell ECMC and Congress to restore fairness for student loan borrowers, not to create special rights to bail out Corinthian.
Tell ECMC and Congress to help students by expanding their options in bankruptcy!
Posted on 8 December 2014