I know some troll will say" obvious" but its worth saying again. If the school closes, then the Government must wash away Fed loans. The government will have to eat Millions of dollars in student loans if Everest ceases operations. They don't want to do that. So no matter how bad Everest is, they will allow it to teach out. All the calling and emailing of students is to protect the Government, if a student ceases to attend, then the loans are not washed away. So the outreach is not to get students to attend, it is to document their none attendance and the tries to reach them. So when they don't attend, the Fed can say "you are the one who quit." The sale, the attempts to save Everest, etc are all a sham, its about the MONEY the Feds might have to pay.
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Wasn't Everest required to have new enrollments sign a disclosure that stated they had been informed regarding the sale of CCI and possible closure of the Everest campuses? Maybe the disclosure voids any new enrollments after June 2014 from being eligible to have their student loans forgiven?
VoIT: Agreed. It's not in the public interest to stick the taxpayer with the defaulted debt. At the same time, it's not in the public interest to have all these people without skills they can add to the economy. If they could funnel these students to real schools, everybody would benefit. Unfortunately, the students don't get their money back if they transfer to another program.
Who is higher up than Obama?
728 - how many of those "new enrollments" are starting every month?
You all make good points but I would like to point out that this is not a benefit to anyone. Come 2015 Obama or someone high up will push for a taxpayer bailout of the student loans just like the bailouts of air carriers after 9/11, automotive, banks, mortgage. Just google student loan bailout.
" it is in the best interest of the Feds and taxpayers that they teach out as many students as possible." New enrollments reset the clock every start. And one must also consider the future default rates. So the debt cannot be discharged, but will it ever be repaid?
There are certain parameters that loan forgiveness must fall into, but the OP is looking at the situation correctly. Regardless of what CCI has been accused of doing wrong, it is in the best interest of the Feds and taxpayers that they teach out as many students as possible.
That's not exactly how it works. You need to deduct those who don't qualify for loan forgiveness, such as those who graduated, or are too far out of the window of time, or those who transfer to a new school, or...
The federal government does not have to wipe away (actually forgive) any student loans. The issue is the illegal and misleading business practices CCI was caught doing (or allegedly) caught doing which is forcing the sale and/or closure of the US schools. Canada from memory is not part of the mess but will certainly be caught in the fall out. In the end the students good bad or indifferent are the ultimate losers who will be left without a certificate/degree and the debt they knowingly agreed to. Don’t forget the students are also to blame for agreeing to loans they willingly agreed to.
DoE really pulled an Urkel this time.
Agreed!