The student loan debacle is not going away anytime soon. The Consumer Financial Protection Bureau wants to hear what the “Debt Collective” group has to say, so all 85 people on debt-strike have been invited to Washington to explain their position. The CFPB can’t resolve their issue, but it can listen and get other government agencies to listen as well.
Corinthian Colleges deceptive marketing and false graduation rates is behind the student’s decision to stop paying their loans. Corinthian runs Heald, Wyotech and Everest Institute. Those institutes lost federal funding because of their alleged deceptive practices. The for-profit education industry is under investigation by the Department of Education. As Brad Reifler understands it, the industry that was once a profitable stock market investment is now a losing money proposition.
The students strike is a dangerous financial move. The government can collect the money through tax refunds and payroll liens. The government can even collect future Social Security money if the Department of Education wants to prove a point. No one thinks that will happen. But something has to be done to rectify the issue, or the strain on the economy will have a major impact on the quality of life for all Americans.