This week, Corinthian Colleges, a for-profit higher education company, announced the controversial sale of 56 campuses to one of the Department of Education’s largest loan guarantors and debt collectors, Educational Credit Management Corporation. Earlier this year Corinthian nearly went bankrupt and the Department of Education decided it was too big to fail. Through emergency aid worth $35 million, the Department of Education saved Corinthian from financial collapse. In exchange, Corinthian agreed to sell or close the 97 campuses in an orderly manner.
Unfortunately, the company purchasing 56 Corinthian campuses, ECMC, is no saint itself. The NY Times reported accusations that the guarantor engaged in “ruthless” collection tactics and Bloomberg reported criticism that the collection agency is “reaping a bonanza from former students’ pain.”
As concerned educators and members of a coalition to build a just and more equitable environment for students, we have two simple demands:
- Students should have a choice. We believe students should be given an opt-out option with loan forgiveness;
- ECMC should not get a “Clean Break.” In efforts to provide justice and relief for students, the acquirer should carry the responsibility for pending investigations against Corinthian Colleges.
