You might remember my blog about ITT Tech’s getting into hot water with the Consumer Financial Protection Bureau (CFPB), when the latter sued ITT for using predatory lending practices on its students. That was back in February.
Now here we are in September, and a similar story is in the news — only this time, it involves Corinthian Colleges.
This past Tuesday, the Consumer Financial Protection Bureau sued Corinthian Colleges for using “strong arm” tactics to collect from its students, and for using predatory lending techniques on them.
Corinthian owns Everest Institute, Everest College, WyoTech and Heald colleges, which collectively have more than 70,000 students.
The CFPB made a public statement on Tuesday, saying:
“Corinthian lured tens of thousands of students to take out private loans to cover expensive tuition costs, by advertising bogus job prospects and career services. Corinthian then used illegal debt collection practices to strong-arm students into paying back those loans while still in school.”
Ay yai yai. Corinthian is also under investigation in 16 states, for allegedly deceiving students by misrepresenting job-placement rates and the earnings of its grads, and for its student-lending practices. That investigation is being led by the Iowa attorney general’s office.
It’s very easy (and understandable) to hear these news stories about student loan borrowers getting wronged, and feel very frustrated and upset.
After all, most of the students who attend a higher education organization are financially green, and have never even balanced a checkbook — much less learned about how to pay back their debt (a highly complicated form of debt, I might add) in a responsible, organized way. Nor have they ever been taught to look out for their financial aid counselors, who might be trying to lure them into as much debt as possible, for their own gain.
There’s another perspective you can take: and that’s seeing these recent headlines as very good news.
Finally, the practices of shady higher education organizations are coming to light, and people are doing something to protect and inform borrowers!
Hopefully, all this media coverage will discourage higher education organizations from doing this in the first place. At the very least, it may help borrowers be much more attentive and careful about taking out student loans.
I remember when, back in 2010, Congress passed and President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act. This Act is what created the CFPB, the main organization involved with shining a light on, and putting a stop to, these ridiculous predatory lending practices.
In sum, if you’d like to read more on this Corinthian College situation, click this link to check out the story in the Seattle Times. Just try to remember that it’s a good thing that this issue is in the news — it would continue to happen in the dark (and proliferate) if it weren’t!
Most importantly, if you’re having any trouble, doubts or concerns about YOUR student loan debt, please schedule a free consultation with me.
Regardless of whether you’re the right fit for my services (I don’t work with every borrower who comes my way), or just need to get oriented in the safest, best direction, I’d be happy to speak with you, go over your balances, make sure you’re clear on your rights, formulate your ideal repayment path, and go off ready to take your ideal repayment steps.
It’s my job and pleasure to steer borrowers in the right direction.