Project on Predatory Student Lending, an organization operated by students and full-time faculty at Harvard University, recently asked a federal judge to move against a topic of concern, hinging directly on student debt.
The United States Department of Education filed briefs with the federal court system that would allow them to sort through and identify Social Security data to turn away discharges of costly student loans to students that were defrauded – more or less, unreal or misrepresented “schools” that collected money without providing credible degrees or credits in return.
Student loan debt consistently keeps rising, and rising, and … ad nauseam … in the United States of America, thanks to its wide availability regardless of financial position or history, college students of all sizes, shapes, backgrounds, flavors, and academic capacities can effectively receive federal funding for loans to attend college.
With so much outstanding student loan debt and interest that accumulates every month on such balances, some believe that forgiving student loan debts of students that were verifiably defrauded by trade schools, four-year colleges, universities, and any other educational institution following high school.
Let’s take a specific example into consideration. Assume a trade school offering vocational programs is named Corinthian Colleges, Inc. That “Inc.” part makes it sound great already, for a school, right?
Anyways, Corinthian Colleges, Inc.’s graduates earned significantly less than those who graduated from similar hands-on vocational programs. This metric is a verifiable, quantifiable means of suggesting that the aforementioned trade “school” had very poor educational quality across its lessons, as virtually all of its students and graduates agree.
The above story isn’t a story – it’s 100% true, and it’s what’s going on right now, with thousands of former students being affected.
The United States Department of Education wants to access Social Security data because it contains former students’ income levels. Through the unjust potential use of that, it can effectively justify discounting slivers of loan balances of students done wrong by Corinthian, effectively not forgiving balances at all.