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STATEMENT: Higher Ed, Not Debt Campaign and Generation Progress Respond to Sale of Corinthian Colleges Inc.

FOR IMMEDIATE RELEASE

November 20, 2014

CONTACT: Jamal Little

jlittle@americanprogress.org; 202.741.6251

 

Washington, D.C.–Today, Corinthian Colleges Inc. announced it will sell 56 Everest and WyoTech campuses to the Education Credit Management Corporation (ECMC).  The Higher Ed, Not Debt campaign has long advocated for protecting students from predatory practices.  In response, Campaign Manager Maggie Thompson released the following statement:

“We hope the Department of Education is correct that ECMC will put student’s interest first, however, ECMC has a storied history of harshly preventing the discharge of students’ loans in bankruptcy.  It’s troubling that ECMC has never run an educational institution so we wonder whether it has the ability to take more than 56 struggling institutions.

While bailing out 56 schools, the sale treats the more than 30,000 students like financial assets. All students should have the opportunity opt-out of the sale and receive a full refund including full loan discharges of both federal and private loans.

Corinthian’s ability to declare bankruptcy underscores the need to allow students the same opportunity. Currently, student loans are nearly impossible to discharge in bankruptcy court, and ECMC is the very company that fights against students’ hardship claims.”

Sarah Audelo, Policy Director for Generation Progress, also released the following statement:

“Corinthian’s sale to ECMC is troubling as ECMC has no history of operating an educational institution.  Students deserve an education with their best interest at heart.  Students attending for-profit colleges, many of whom are low-income, enroll in these institutions with the goal of bettering their lives for themselves and their families.  It is our hope that ECMC will work to correct the actions of Corinthian Colleges and give these students a fair shot at that goal.  The livelihood of these students will depend on how actors like ECMC treat their educational endeavors and student loan options.  Given ECMC’s history of blocking students from claiming bankruptcy, we hope the interests of students will be placed above the interests of the school’s bottom line.”

To speak with an expert, please contact Jamal Little at jlittle@americanprogress.org or 202.741.6251.

 

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